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Layoffs Hit Xbox Studios Ahead of Closure

The cuts are part of larger reductions at Microsoft

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hollywoodreporter.com
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Kayant1463d ago

"Microsoft is cutting staff at Xbox Entertainment Studios" - So not new. Anyways thoughts to those affected and hope they get back on their feet.

mayberry1463d ago

The article stated that this will happen Thursday, ahead of the previous announced date. This is the Santa-Monica area studios. Lots of tech companys in that area, some hopefully all affected find new gigs!

mhunterjr1463d ago

It sounds like the jobs were entertainment related, not so much tech related. Either way, I hope they all land in their feet.

UltimateMaster1462d ago

I wish those developers good luck in finding themselves new jobs.

kreate1461d ago

Wish they didnt cut anyone from xbox division ....

dirkdady1461d ago

Its difficult breaking into the TV biz, not sure why Microsoft thinks it can build one from scratch.

It took Sony over 14 years to build its TV division with the help of its massive movie studios and its starting to finally crank out hits such as Breaking Bad and The Blacklist.

Its not something that can be achieved overnight let alone without industry resources and built relationships.

AndrewLB1461d ago

Expect to see such massive layoffs across all sectors of the economy in the coming two years due to the implementation of the "Affordable Care Act". All businesses with more than 50 full-time (now considered 29 hours or more per week) employees are going to be required to provide very expensive medical coverage to every one of them or face massive fines. It doesn't matter if they're software engineers, homeboy at GameStop, or employees at McDonalds. Everyone must be "given" overpriced insurance that covers everything including birth control, drug rehab, prenatal care, childrens dental, condoms, and more... regardless of your age, gender, or sexual preference. I can't wait till the gay guys i know find out they are being forced to have birth control, prenatal care, and childrens dental as part of their policies! haha.
The thing is, because you're being forced to have this coverage (or your boss covering you), the insurance companies know you have to buy it, and the prices are going to skyrocket higher than they already are. (mine tripled from $160/mo to $530/mo) And this will cause companies to either A) Cut employees hours below 29/week and hire more part-time workers to make up the lost man-hours or B) Lay-off enough workers to lower costs C) Raise the hell out of prices and screw consumers. I'm sure we'll be seeing all three of these since small businesses have been dealing with this bull$#it law for the past year and that's what we've had to do.

UltraNova1461d ago

@ dirkdady

Yes it is actually its called unlimited cash and execs with influence everywhere. MS in a nutshell.

The did cut into Sony's and Nintendo's console gaming deathgrip didnt they?

The gaming industry is as hard to penetrate as the TV's if not worse. Finally, they only need to succeed in the US when it comes to TV shows the rest of the world will follow, while gaming is a global effort.

Hell Netflix did it on their own why MS shouldn't? They already have a platform to deliver that content at everyone’s homes already.

Kayant1461d ago

@kreate

"Wish they didnt cut anyone from xbox division" - They did but that was part of the advertising team.

"Some of the job cuts will be in marketing departments for businesses such as the global Xbox team, said the people. The European Xbox team is based in Reading, U.K." - http://www.bloomberg.com/ne...

rainslacker1461d ago

@andrew

Companies have been laying off people for decades without an affordable care act. MS already offers it's employees health insurance, so I doubt that's the reason they're doing this.

The affordable care act mandate for business(and people going the private route) has been delayed until 2015, and may be pushed back to 2016. Not everyone's insurance has gone up, mine has actually gone down, and I am eligible for the govt paying some through the marketplace, so it went from $350/mth to $290/mnth and $200 after the rebate thingy.

A)Companies may do that, or they may just pay the rather measly fine involved with not offering insurance which would be much less than having to offer insurance. Companies aren't required to give their employees mega-awesome(expensive) insurance, just offer it, and believe me, many companies have really crap insurance which isn't worth the money for it's employees, and the employer isn't required to pay any portion of the health insurance for it's employees beyond the initial group buy-in...which is only a few thousand dollars a year for most companies.

The mandate to actually have insurance falls on the individual though, and anyone is able to opt-out of any employee offered insurance.

B)They do this all the time already. A majority of companies need a minimum number of man hours to operate, and that will be maintained. MS sees layoffs every few years.

C)Yeah, except customers won't pay. Prices are determined by market forces, and there is always a medium that has to be found between revenue and costs.

I believe there are some issues with the affordable care act that need to be addressed. However, using these layoffs as your sounding board against Obama is rather lame. If you're going to spew propaganda, at least make sure you have your facts straight.

brads41461d ago

NOTHING to do with affordable care act. Not even close. The pain of small business is not he same as Microsoft. Everyone already has enough health coverage in software. These are high paying jobs with good benefits. Don't worry, they will be fine.

MysticStrummer1461d ago

Thank you, FOX News correspondent AndrewLB. Up next… Bill O'Reilly exposes more of the mysteries that science just can't explain, such as tides.

OT - As someone who lost their job due to 9/11 related downsizing, I know how much it sucks to be suddenly out of work. Good luck to all those people.

TedCruzsTaint1461d ago

@mystic

And a bubble for you, sir.

+ Show (8) more repliesLast reply 1461d ago
Evilsnuggle1462d ago ShowReplies(9)
Mega241461d ago

They will be okay, this trend of layoff is not something good though. Preoccupying non the less.

Eddie201011461d ago (Edited 1461d ago )

Microsoft is cutting 18,000 jobs company wide over the course of a year, am I the only one that read that. That's a lot of lost jobs.

1461d ago
Eddie201011461d ago (Edited 1461d ago )

Microsoft employs 128,000 people worldwide 61,000 of that number in the US. So they intend to get rid of 16 to 17 percent of it's employees in one year.

http://www.microsoft.com/en...

Sony employs 140,000 people worldwide.

http://www.sony.net/SonyInf...

Walmart 2.1 million US alone.
Mcdonalds 1.9 million US alone.
Volcswagon 501,956 world wide.

Charybdis1461d ago

Largely due to nokia aquisition they gained about 25.000 employees. 2013 they had 99.000 employees in 2014 as of june they had 127.000 employees.
http://www.businessinsider....

Eddie201011461d ago (Edited 1461d ago )

Microsoft's official number of employees worldwide is 128,076 as of June 30. Your point does not negate a large number of jobs being lost, because of Microsoft. !8,000 jobs are being reduced company wide, I read the article and the official Microsoft financial page.

+ Show (1) more replyLast reply 1461d ago
Pogmathoin1461d ago

This thread is a lesson in 'read the fookin actual article!'

TBONEJF1461d ago

It's because they purchase Mine Craft for 2 Billion. IF they hadn't done so those people wouldn't lost their jobs

1461d ago
_-EDMIX-_1461d ago

The hell is this? Is this even news? Sooooo they are laying off people of a division that has been confirmed to be closing long ago?

I'm....I'm just not sure what anyone expected. Do the not understand what closing down a studio means? Thats like doing a following story about a company closing down with "Company X hit with layoffs" Its bad journalism.

Of course its being hit with layoffs, its been confirmed they are closing the whole damn division down, thus....those people have been CONFIRMED to be layed off. I'm not sure what they would be doing at MS after the fact anyways.

Retroman1461d ago

I-live-in-Seattle-KOMOnews-nev er-mention-a-coverage-on-this-l ayoff-hitting-Microsoft-game-st udio.

+ Show (5) more repliesLast reply 1461d ago
lonelyplayer1462d ago (Edited 1462d ago )

EDIT 1:
@SuperBlur: Thank you for clarifying, I now see it makes sense.

lemoncake1462d ago

Microsoft having an xbox studio dedicated to making tv content was a bit of a weird move in the first place, they also haven't churned out much in the 2 or so years that they have been around.

Tedakin1461d ago

Yeah agreed. Seems smarter, and safer, to hire studios to do content than to open up a whole studio.

luis_spartano1462d ago

Then MS wastes 2bi buying JUST ONE studio, a studio MS probably will destroy after.

BitbyDeath1462d ago

It was purchased to help sell mobiles.
Mobiles are key to MS's vision of the future.

Sir_Simba1462d ago (Edited 1462d ago )

they think its key but its not lets be honest their phone division is just not healthy

1461d ago
rainslacker1461d ago

I dunno. I think they could get that mobile support without buying up the whole company. I think the buyout was more about the fact that MineCraft actually does make a lot of money, so it's not a bad investment. If it didn't make money, then I doubt the shareholders would have gone for it. I can't say if it's a good long term investment, nor can I say if it will move any hardware for them on any front, but it will likely return their investment.

As far as their mobile stuff, they just need to get more people to see how good Window's Phone OS actually is. They were late to the party there, and have to fight against two very entrenched competitors who have completely different philosophies from MS.

Macdaddy711462d ago

Ok let's watch all the PS4 guys start posting, 1. X1 not selling, 2. Due to ps4 more powerful, 3. Not selling overseas, 5. Because they don't like it..lol...
Sony girls??? Don't forget MS just spent 2 billions on minecraft...we are A-Ok
It really is OK!!! Cause Sony will be doing same thing when there Sony Tv fails also...

Don't hate!!!! Cause I own all 3. Ps4 x1 wii u

DragoonsScaleLegends1461d ago

There TV division has already failed what are you talking about? They have lost money on it for the past 10 years. Also what's wrong with Sony girls?

DragoonsScaleLegends1461d ago

@Trekster_Gamer lol lol lol lol lol lol! Haters gonna hate so come at me bro ha ha ha ha ha ha ha ha.

pixelsword1461d ago (Edited 1461d ago )

@ Macdaddy71

I wouldn't worry about that; if it's true or false, none of us here can do anything about it.

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