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Microsoft lays off another 650 staff from its video game workforce. It's Friday, September 13th, and this is IGN News. Microsoft is laying off a further 650 staff from its gaming business according to a memo sent by Xbox Chief Phil Spencer to staff yesterday, September 12th, and obtained by IGN. In the memo, Spencer said the roles effect mostly corporate and support functions and were made to organize our business for long-term success.
He clarified that no games, devices, or experiences are being canceled and no studios are being closed as part of these cuts. These latest layouts mean Microsoft has let go of 2,550 staff from its gaming business since acquiring Activision Blizzard for $69 billion in 2023. In his memo, Spencer makes it clear that the cuts are related to the acquisition. These cuts follow the already eye-watering 1900 layoffs Microsoft made to its gaming business earlier this year and continue the video game industry's torrid time of late.
Microsoft closed hi-fi rush developer Tango Game Works and Redfall developer RK Austin as part of those cuts. Pugbee publisher Kraft and later picked up Tango Game Works, saving around 50 of the 100 staff. Speaking to IGN in June, Spencer said, I have to run a sustainable business inside the company and grow. And that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make.
While Spencer as recently insisted Microsoft's video game franchises are getting stronger and Xbox console players are as high this year as they've ever been. Xbox consoles sales have plummeted and the gaming business is now bringing a number of its exclusives to rival platforms including PlayStation 5. Speaking in August, Spencer said that Xbox's multi-platform push is in part about bringing in more money to Microsoft's gaming business with the pressure now on to deliver following Microsoft's acquisition of Call of Duty Maker Activision Blizzard. Thanks for listening to IGN.
My name is Tony Jackson and for the latest console updates, visit us at iJan.com.