Xbox Physical Retail Teams Among Those Affected by Microsoft Layoffs
The latest layoffs at Microsoft primarily targeted the departments responsible for distributing physical Xbox games to retail outlets. On January 25, reports surfaced indicating that Microsoft Gaming was letting go of approximately 1,900 employees from its 22,000-strong workforce. A significant portion of these layoffs appears to be affecting the customer service division of the recently acquired Activision Blizzard, which was previously recognized for its strong customer support services.
When Microsoft completed its acquisition of Activision Blizzard in October 2023, it was viewed as an auspicious sign for the future. The anticipation of augmented resources and enhanced infrastructure to facilitate ambitious ventures left numerous Xbox enthusiasts eager for what lay ahead. However, what often went unacknowledged was the substantial $68.7 billion acquisition cost and its potential financial implications for all entities now operating under the Microsoft Gaming umbrella. Additionally, Blizzard President Mike Ybarra and Chief Design Officer Allen Adham have departed from the company, while certain Bethesda employees have disclosed their involvement in the layoffs.
Among the targets of the cost-saving restructuring were the teams responsible for distributing physical Xbox games to retail outlets. While this doesn’t explicitly indicate that Microsoft Gaming will imminently discontinue physical releases, the outlook is not optimistic. Leaked documents from the FTC vs Microsoft hearing in September 2023 unveiled the gaming giant’s intentions to introduce a digital-only Xbox Series X console, slated for a projected launch in November 2025.
