Sept 12 (Askume) – Microsoft Corp (MSFT.O) said it will cut 650 jobs at its Xbox unit, its third layoff this year, as it seeks to control costs and follow through on its $69 billion acquisition of Microsoft Corp. Consider Blizzard grounded (Bloomberg) .
The gaming industry saw mass layoffs, studio closures, and project cancellations in the first half of this year , as gamer spending slowly recovered after player engagement peaked during the pandemic.
The report cites a memo sent to employees by Xbox CEO Phil Spencer that said the layoffs would primarily affect company and support functions.
As part of these adjustments, no games, devices, or experiences have been canceled, and no studios have been closed, the report said, citing the memo.
Microsoft and Xbox did not immediately respond to Askume request for comment.
Microsoft last year completed a deal with Activision Blizzard, strengthening its position in the video game market and leveraging best-selling games such as “Calendar” to compete with industry leader Sony Corp (6758.T) .
The tech giant said in January that it would layoff 1,900 employees at Activision Blizzard and Xbox .
May, XboxSeveral game studios have shut down , including Arcane Austin.
Research firm Newzoo last month withdrew its annual growth forecast for the global video game market , citing weak console sales due to a relatively short game release schedule this year.
