Despite the layoffs, some experts believe this could strengthen Microsoft's position in the gaming market against competitors like Sony and Nintendo. The acquisition of Activision Blizzard was a strategic move to gain control over more intellectual property and eat up a larger portion of the gaming market. However, Microsoft will face new challenges as gaming evolves with emergent technologies like cloud gaming, blockchain-based experiences, and AI-driven gaming.
Key takeaways:
- Microsoft laid off nearly 2,000 employees from its gaming division, including from its Xbox and Activision Blizzard divisions, representing about 8.6% of Microsoft’s gaming staff.
- The layoffs come three months after Microsoft's $68.7bn acquisition of Activision Blizzard and are part of a larger plan to identify areas of overlap post-acquisition.
- Despite the layoffs, Microsoft's position in the gaming market could be strengthened, allowing it to compete more effectively against rivals like Sony, Nintendo, and Roblox.
- Experts predict that tech and media layoffs are likely to continue in 2024, but there is hope that the skills of those laid off will still be in strong demand and may lead to the creation of new startups.