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Microsoft is laying off 1900 Activision Blizzard and Xbox employees (8% cut from the Gaming Division)

kruis

Exposing the sinister cartel of retailers who allow companies to pay for advertising space.
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That response is a copy paste that dozens of people has posted unedited as some kind of protest or something.

No, that was the original response that others copy pasted. Pretty interesting to see Reset Era users standing up against the crazy mods.
 

Ozriel

M$FT
All this while, people have been wondering why Spencer wasn’t saying anything to address all the rumors of multiplatform releases of exclusive titles.

Man was busy cooking up a plan to sack 1900 people after going with full page ads on how the acquisition was perfect for workers.

Do a ‘developer direct’ claiming to celebrate developers. Next week you sack enough developers to staff 5 AAA studios.

It’s a comedy show over at Xbox.
 

Elbereth

Member
2024-01-25-15-31-44-IGN-Microsoft-Lays-Off-1-900-Staff-From-Its-Video-Game-Workforce-Page-38-R.png
 
We are at least 3 years out from TESVI (optimistically), and likely a decade out from Fallout 5.

They really couldn't take some of those 1900 people and send them over to Bethesda so games that people actually want can actually get made in a reasonable timeframe?
 

Krieger

Member
I want to know if anyone who had a talking part during the developer stream got fired. Just imagine it: you are told to talk about how great everything at your workplace is and then, 1 week later, you are fired from this great workplace.
 

Thyuda

Member
We are at least 3 years out from TESVI (optimistically), and likely a decade out from Fallout 5.

They really couldn't take some of those 1900 people and send them over to Bethesda so games that people actually want can actually get made in a reasonable timeframe?
I have honestly no idea what MS is even doing for those aquired companies. NOTHING seems to change for the better.
 

Mortisfacio

Member
This excuse works for your average company on thin margins, not Microsoft

Large companies are able to sustain losses for longer due to have expansive their portfolios are. One sector is down, they can continue to fund negative sectors with revenue from elsewhere, but over a long enough period of time of loss, all companies eventually cut. This particular case is 1900 workers. Currently as far as I can find, this 1900 does not break down salaries/positions of all cuts, just a general number. Glassdoor has ABK positions ranging from $50k to $200k+, so lets just take an average of $80k a pop. That's $152 million a year in wages cut and that's not including benefits. Xbox sales are declining YoY in many regions. Large titles, like Starfield, didn't meet expectations. D4 is lackluster. MW3 saw a 38% decline in the UK compared to MW2 by the 3 week mark of release. At least from what can be viewed publicly, it makes 100% sense to cut back.
 

havoc00

Member
Ybarra has flown the coup I see. A sinking ship and dumpster fire all in one. Bad for those people getting let go. Hope they find jobs. MS are blatant scumbags. Where is Good Guy Phil lately??? Complete and utter radio silence from him….I wonder why?
He just secured palworlds and making sure the activision games hit gp asap for us Xbros
 

Fredrik

Member
We are at least 3 years out from TESVI (optimistically), and likely a decade out from Fallout 5.

They really couldn't take some of those 1900 people and send them over to Bethesda so games that people actually want can actually get made in a reasonable timeframe?
These layoffs affects Bethesda studios as well from what I could tell from that Phil memo.
Expect delays until proven otherwise.
 
We are at least 3 years out from TESVI (optimistically), and likely a decade out from Fallout 5.

They really couldn't take some of those 1900 people and send them over to Bethesda so games that people actually want can actually get made in a reasonable timeframe?

Most of these are outside the actual development, Q&A got hit the hardest development side, most of the jobs though were outside development; The legal department as well as the HR department from Activision is merging with the Microsoft one, they’ll retain what they need, but past that they don’t need the headache of running two separate legal departments and HR departments especially when both have a questionable history Activision side.

No matter what, in a merger like this you get a musical chairs scenario; too little work for too many people…You going to convince a para-legal to learn to wax the floors? An accountant to clean toilets? Convince half the people to break contract and take half the hours to let the other people stay? When there’s overlap there’s overlap.

It sucks but it’s the norm for a merger.
 
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Banjo64

cumsessed
MS is getting all the heat, but the level of corruption of every party involved in this case (unions, media, CMA, FTC, etc) is mind-blowing. Those are the people who should lose their jobs, if not go straight to prison.
Don’t blame the CMA. M$ clearly went over their head and the UK government clearly intervened despite the fact that they are a non-ministerial dept.
 
Reading about Odyssey puts in perspective how bloated are the modern companies are where hundreds of dev are unable to deliver a game while small team with less than 100 can deliver hits like Palworld or even 13 person team can deliver Grounded. 6 years for another and hundreds of devs in order to go to 2026 at best 🤯
 
I've been hearing that layoffs, especially in the tech sector, have been a "COVID course correction" since late 2021/early 2022. It's been two years, I don't know how much I can believe that current layoffs are still a post-COVID adjustment. This seems like something much bigger than the COVID era. 🤷‍♂️

I don't think you really understand the far reaching factors here.

It wasn't just the illness, you're talking about the impact it had on supply chains and the rise in prices related to that. You're talking about the rise in salaries to account for rising prices. You're talking about the intense hiring based on thinking gaming was reaching a new level of annual revenue. You're talking about a lot of projects that are no longer feasible at all. You're talking about people who were grandfathered into having remote roles.

The industry is looking to trip costs 10% and then rehire a lot of these people at significantly lower wages. Rinse and repeat.

The entire industry is trying to reset the landscape and ensure future profitability when game costs are clearly getting out of hand.
 

Oppoi

Member
All this while, people have been wondering why Spencer wasn’t saying anything to address all the rumors of multiplatform releases of exclusive titles.

Man was busy cooking up a plan to sack 1900 people after going with full page ads on how the acquisition was perfect for workers.

Do a ‘developer direct’ claiming to celebrate developers. Next week you sack enough developers to staff 5 AAA studios.

It’s a comedy show over at Xbox.
Man did you just lose your job?
 
Most of these are outside the actual development, Q&A got hit the hardest development side, most of the jobs though were outside development; The legal department as well as the HR department from Activision is merging with the Microsoft one, they’ll retain what they need, but past that they don’t need the headache of running two separate legal departments and HR departments especially when both have a questionable history Activision side.

No matter what, in a merger like this you get a musical chairs scenario; too little work for too many people…You going to convince a para-legal to learn to wax the floors? An accountant to clean toilets? Convince half the people to break contract and take half the hours to let the other people stay? When there’s overlap there’s overlap.

It sucks but it’s the norm for a merger.

It's a lot to assume that work magically disappears just because you have duplication.

What you're really doing is having 1 person do the workload of 2 people.

That's the reason why you saw games get canceled. It's because if you don't cancel some of the workload, you're going to drive morale down and people will leave (more than you want). Why cancel games? Because if your portfolio is overstuffed, you get stretched thin with consumers. And you already have to keep operating costs down with GamePass...you know like we've been saying on here for years.
 

Banjo64

cumsessed
An issue with this is that unlike other tech M&A and redundancies: gaming is a creatives business. POV you work at ABK and half of your team has just been laid off. Your mates, the people you sit with every day, see outside of work. You know they have families and mortgages and they’ve just been discarded like they’re worthless.

Hardly instils loyalty to the company, a desire to do your best etc. Would just make you bitter and looking for an out unless you’re one of the crap people just coasting for a pay check.

Stuff like this influences end product.
 

HeWhoWalks

Gold Member
Sony doesn't have too many studios to support, if anything the general drought of games suggests they probably still need a couple more studios.
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Sony has plenty of studios to support. The "drought of games" suggest there are a number of things at play here, but a lack of studios isn't one of them. Last thing they need is a situation like this — so many more studios and very little to show for it.
 
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