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Microsoft Lays Off 650 Videogame Workers

What Happened?

On May 18, 2023, Microsoft laid off 650 videogame workers, primarily from its Xbox Game Studios division.

Why Did It Happen?

The layoffs are part of a larger cost-cutting measure by Microsoft, which has seen the company lay off over 10,000 workers in recent months. Microsoft has stated that the layoffs are necessary to “align our costs with our business needs.”

The layoffs come amid a broader downturn in the videogame industry. Sales of videogames have declined in recent months, and many videogame companies have announced layoffs in recent months.

Who Was Affected?

The layoffs affected workers across a range of disciplines, including game design, engineering, and marketing. Some of the most notable layoffs include:

• Bonnie Ross, head of 343 Industries
• Matt Booty, head of Xbox Game Studios
• Phil Spencer, head of Xbox

What Does This Mean for the Future of Xbox?

The layoffs are a major blow to Microsoft's Xbox division. Xbox has been a major player in the videogame industry for over two decades, and the layoffs represent a significant loss of talent and experience.

It is unclear what the long-term impact of the layoffs will be on Xbox. However, it is likely that the layoffs will lead to a slowdown in the development of new Xbox games.

Conclusion

The layoffs at Microsoft are a major event in the videogame industry. The layoffs represent a significant loss of talent and experience for Xbox, and it is unclear what the long-term impact of the layoffs will be on the company.