850°

Senator Urges FTC to 'Unwind' Microsoft Activision Merger After Mass Layoffs

Senator Elizabeth Warren has urged the Federal Trade Commission (FTC) to "unwind" Microsoft's purchase of Activision Blizzard after layoffs.

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playstationlifestyle.net
MrDead516d ago (Edited 516d ago )

Oh look, the thing that we knew was going to happen is happing. Yes MS is the giant pile of **** we knew it was and now you've handed a huge part of the industry to them workers are paying the price.

Gamers got screwed with the sale of these publishers and now the workers are too, but hey a handful of very, very, very, rich people got stacks more cash from this deal and shareholders will get a nice boost and that's the only thing that matters to MS. Isn't industry consolidation great!

"Senator Warren took to Twitter to criticize the downsizing, reminding followers of her previous warnings against the merger. “I warned that this deal would hurt workers,” she wrote. “These layoffs are a stark reminder that corporate mergers are bad for workers. The FTC should keep up the fight to unwind this merger.”

Activision Blizzard employees have described the layoffs as a “bloodbath” on social media. Reports have emerged that Call of Duty developer Sledgehammer Games has lost more than a quarter of its employees. CharlieINTEL puts the percentage of Sledgehammer layoffs at 25% whereas Tom Henderson of Insider Gaming has heard it’s somewhat close to 30%."

Neonridr515d ago

are you suggesting that had MS not bought these companies that no layoffs would have happened?

big time stretch here..

MrDead515d ago (Edited 515d ago )

"are you suggesting that had MS not bought these companies that no layoffs would have happened?"

A US Senator is, I'm agreeing. "Senator Warren took to Twitter to criticize the downsizing, reminding followers of her previous warnings against the merger. “I warned that this deal would hurt workers,” she wrote. “These layoffs are a stark reminder that corporate mergers are bad for workers. The FTC should keep up the fight to unwind this merger.”

As for the devs "Activision Blizzard employees have described the layoffs as a “bloodbath” on social media."

"I really have no words right now, just feeling alot of trauma from the 2018 layoffs and we're here again. No idea if my position is impacted and just trying to hang out with my team while I can."

"There have now been posts from almost every Call of Duty studio about lay offs. Employees from Infinity Ward, Sledgehammer Games, Raven Software, Treyarch, High Moon Studios, and more laid off. Devastating."

Who do you suggest is to blame for this?

ManMarmalade513d ago

MS spent billions on developers and they didn't do a good job investing their money into their products. I barely saw any ads for starfield, redfall was a mess and there have been plenty of other sub-par experiences. Of course it's MS's fault.

Profchaos513d ago

Not suggesting the data confirms it.

frostypants513d ago (Edited 513d ago )

It's only a stretch if you're unfamiliar with corporate behavior. Layoffs are incredibly common following an acquisition. It is unlikely these layoffs happen if Activision is still a separate entity. I don't even like Warren but she is correct to tie these events together.

ThinkThink513d ago

@mr dead
You could alway blame activision for going on a hiring spree AFTER the announcement of the acquisition. But that wouldn't be as much fun, so let's put it all on Microsoft.

GamerRN513d ago

So wait, did you also call Sony out when they had the recent Bungie layoffs?

Cacabunga513d ago

This merger proves one of the two things:
1- Law system is corrupt and closed eyes
2- Law system is amateur and didn’t foresee layoffs and increase in price due to digitalization where the gamer is owning nothing..

In both cases it’s a scandal

Kaozz1979513d ago

Huge stretch I would say. Especially with AI being used more and more in games. Going forward a lot of people will lose their job because of AI, and not just in the gaming industry.

+ Show (5) more repliesLast reply 513d ago
Zeref513d ago ShowReplies(13)
S2Killinit513d ago (Edited 513d ago )

And the Senator on MS’s payroll is coming to tell us MS needs to be left alone.

purple101513d ago

I thought the layouts were just in overlapping roles, such as HR and finance.

Now we find out 25% of sledgehammer is gone

That really is a bloodbath!!

-Foxtrot513d ago

Toys for Bob who made Crash Bandicoot 4 and Spyro Reignited Trilogy lost 30-40% of their staff, about 35 people.

This is before they were then were turned into Call of Duty support studio and after made that awful Crash Team Rumble GaaS title

Juancho51513d ago

Your downvotes are coming from people that dont understand late stage capitalism and monopolization and consolidation of industries. Probably 14 year olds who have no idea how the world works.

They’ll cheer for Microsoft because they were born in the XBox generation and dont know better.

Darkegg513d ago

This is for the young generation: mergers do make the rich richer, and the workers jobless. That’s why it isnt a good idea. Once somebody is rich, they have the golem obsession of money. It’s the temptation and corruption of the mind.

FinalFantasyFanatic513d ago

I'm not looking forward to my Cyberpunk-like future, you could see this coming from a mile away, but I guess there's no substitute for life experience.

VariantAEC513d ago

This has less to do with Capitalism and more to do with simple greed.
Capitalism is an economic system.
Greed is the want of money.
The current global market including Communist markets and other economic systems are all plugged into the wider monetary trade which has NOTHING AT ALL TO DO WITH ANY ECONOMIC SYSTEM. You can blame Americans or the Western world at large for the utter ridiculousness of chasing endless growth of wealth. However the monetary trade has nothing to do with Capitalist, Communist, Socialist or any other economic platforms.

Capitalism is offering services for money. Microsoft does do that many companies do but their service used to be selling us operating systems and productivity software. Today MS leases us everything. You might own your PC hardware, but you're a half step away from renting Windows (the software that controls everything about your PC) these days.

In order to be successful in a Capitalist economy you need to offer something people want. If people really want something you can provide you can increase prices as a means to slow demand so you can keep up with supplying the goods. That is how Capitalism works.

MS doesn't work in that system anymore. Most companies traded publicly don't which is also how MS was able to capture ABK without a hostile takeover. Generally speaking, crashing a competitors stock value without a hostile takeover... well I think MS just broke ground there in acquiring ABK they way they did. Anywho... MS were able to do that not because the company purchased them at full price but because they helped tank their stock valuation to a price they could afford and ABK's leaders couldn't afford to pass up. That's not Capitalism and we know it isn't because Microsoft doesn't make good games which ABK used to and still could... before the acquisition.

The latest CoD campaign suffered in part due to the damage MS imparted on ABK (as well as several other projects) via the stock manipulation. We know this happened because MS leaked their past endeavors including actively manipulating ABK's stock value. How the FTC was unable to stop the merger when that information was part of discovery is baffling to me... but we're in clown world now.

InUrFoxHole513d ago

Lol you big mad. Bet if anyone else would've purchased them they would all still have jobs. Get real and get bent

babadivad513d ago

This literally happens in every merger.

x_xavier_x513d ago (Edited 513d ago )

Get off your soapbox and stop with the faux indignation. Whenever there is a merger or acquisition between two companies there are always layoffs. ALWAYS. Stop pretending like this situation is an outlier.

I grew up in Massachusetts's. Elizabeth Warrern is one of the least respected politicians in this county, and that is saying a lot. She's an absolute idiot who does nothing but complain, without offering viable solutions, and jump on any hot button issue that passes her way. This comes from someone with political ties who grew up in Massachusetts.

MrDead512d ago (Edited 512d ago )

"Whenever there is a merger or acquisition between two companies there are always layoffs. ALWAYS. Stop pretending like this situation is an outlier."

It's like the extremely simple minded can't read, then they cheer on the thing that's hurting them because that's what happens under a merger even when the merger doesn't need to happen... people lost their livelihoods because of nothing but greed and so a tax dodging mega corp can consolidate another industry, the idiotic things they get you to support because of brand loyalty is insane.

hmmm, actively supporting things that will end up hurting you, I'm not even in the US and I can tell you're a republican.

zaanan512d ago

Why is this article being hidden? Its 850 and the top four max out at 360. Same thing happened to the “ Microsoft announces layoffs at gaming division” article, it’s 980 but completely hidden. Is there an MS defender on staff?

x_xavier_x512d ago (Edited 512d ago )

"I'm not even in the US and I can tell you're a republican"

You have the gall to call other people simple minded and then follow it up with that ignorant statement. It's obvious that you're one of those nitwits that only thinks in binary terms, Democrat vs Republican, PlayStation vs Xbox etc. Putting people in readily defined boxes makes it much easier for shortsighted individuals like yourself to understand complicated issues. The problem is that this type of behavior leads to a myopic viewpoint, bias and group think.

Why exactly are you bringing political matters (foreign to you) into this discussion? We can disregard anything that Elizabeth "Kooky Aunt" Warren has to say on the topic as she is simply jumping on the daily bandwagon. She's already forgot about it and has moved onto the next newsworthy topic.

Your primary argument is that Microsoft is "evil" because it laid off workers after the merger. As I stated this happens EVERY TIME there is a consolidation of companies. At no point did I say I supported or "cheer on" this action. I'm not even sure how a rational person would make that assumption. If I did say I was in favor of layoffs, then show me the evidence. Downsizing and layoffs are always an unfortunate circumstance for the workforce, but inevitable whenever there is a merger or acquisition.

BTW, I'm not a Republican. One would think that an "intelligent" person like yourself would know that Massachusetts is an overwhelmingly Democratic state. Stay in your lane, which appears to be hating on a rival video game company, you pathetic, immature fanboy.

+ Show (7) more repliesLast reply 512d ago
XiNatsuDragnel515d ago

Like I said this wasn't really good imo because things haven't truly changed there yet but we'll wait.

crazyCoconuts513d ago

Quality of games don't historically improve over time under MS' wing. Quite consistently the opposite unfortunately

Zeref513d ago Show
Markdn513d ago (Edited 513d ago )

Lol are you living in a cave Zeref?

Chevalier513d ago

"Xbox players like diversity"

Sure they do. Worse Forza, Halo, Gears games and more Fables is so much variety. Playstation has more games available as there are more 3rd party exclusives filling up the gaps. There's no equivalent of FF7 on Xbox for example.

More games and higher quality over too. If Xbox has so much 'quality' then why is it got the least sales overall?

Zeref513d ago

@Chevalier.

Sure there's no equivalent to FF7 on Xbox. Until it comes to Xbox lol.

Meanwhile:

There's no equivelant to Gears of War, Age of Empires, Flight Simulator, Grounded, Sea of Thieves, Starfield or Pentiment on Playstation.

These are off the top of my head and none of those are 3rd party.

And that's not even counting upcoming games like, Avowed, TowerBorne, Indiana Jones(thematically Uncharted is similar but gameplay wise it's completely different)

Meanwhile Playstations 1st party 2024 line-up has absolutely nothing on it 😭

RedDevils513d ago

Zeref the more you talk, the more you look a delusion fool.

crazyCoconuts513d ago

Someone did a chart of the metacritic scores of all the games under Xbox studios over time.
@zerf, can you guess the trajectory of that tend line?

Chevalier513d ago

@Zeref

Crazy delusion you got going. Which Xbox 1st party game did they make that sold 20+ million like TLOU, Horizon Zero Dawn or 30+ million in the last decade?! Oh right NONE.

"Gears of War, Age of Empires, Flight Simulator, Grounded, Sea of Thieves, Starfield or Pentiment on Playstation."

None of which really compare to Playstation exclusives. Again if these exclusives are so damn good then why is it again that not only do Playstation and Nintendo exclusives sell more they also move more consoles too.

FinalFantasyFanatic513d ago

"Xbox players like diversity"

I was going to say something about this, but Chevalier beat me to it long ago, Microsoft is known for serving up the same types of games and constant sequels, more than Sony, or to a lesser degree Nintendo has (let's not argue over Mario, Donkey Kong, and to a lesser degree Zelda).

+ Show (5) more repliesLast reply 513d ago
-Foxtrot515d ago (Edited 515d ago )

Gamers: "What the hell are the FTC and CMA doing? They need to let this whole thing go and just approve it, how sad are they to get involved for this long, they just don't quit"

*deal goes through, people lose their jobs, the rich get richer*

Also Gamers: "Why did agencies like the FTC and CMA not do something about this? It's the whole point of their existence, that's what they are there for and they couldn't even do their jobs correctly. This shouldn't have happened"

Neonridr515d ago

didn't Sony buy Bungie and then layoff a bunch of people? Did you feel the same way then?

513d ago
DickyD1226513d ago

Bungie is a separate entity to Sony and was actually paid to keep staff. Apples and oranges bud.
Source:
https://www.eurogamer.net/s...
https://gamerant.com/bungie...

-Foxtrot513d ago

Awful counter point, just awful

Like I'm going to repeat what Dicky has said enough but Sony literally paid extra to stop that from happening and Bungie still did it despite the extra money.

The fact people agree with you says something...

513d ago
livedeht513d ago

@Neonridr...whataboutisms: the act or practice of responding to an accusation of wrongdoing by claiming that an offense committed by another is similar or worse

Barlos513d ago

No they didn't. Sony don't outright own Bungie. It was Bungie themselves that laid staff off, not Sony.

ThinkThink513d ago

No, that's different. That was sony. We're talking about Microsoft here.

DOMination-513d ago

What are you guys talking about?

Sony completely own Bungie. They are not a "separate entity" They just aren't part of the PlayStation division iirc they fall under Sony Music for some reason but regardless Sony own them.

+ Show (6) more repliesLast reply 513d ago
Petebloodyonion515d ago

Before acquisition, FTC must block this deal because it's bad for CONSUMERS.
After mass layoffs in the majority of the industry
We were told several times that this deal was bad for WORKERS.

Perhaps having consistency would help the credibility of FTC.

jwillj2k4513d ago

It’s bad for consumers because of less games and bad for workers because of layoffs. Nothing here to troll about

Petebloodyonion513d ago

Care to mention where and when the FTC mentioned in their statements that this deal was bad because MS would produce fewer games versus ABK current output?
The only potential resemblance of a similar would have been that MS would have the power to deny Playstation users access to ABK games. to wich MS replied that would continue to support Playstation and even port games to Nintendo and Mobile increasing the potential access.

But in no way shape or form was a statement about making fewer titles compared to the already asbissimal ABK current output

REDDURT513d ago

You just got 1900 developers out there who can make more games.

Unknown_Gamer5794513d ago

I get the impression you think those things are mutually exclusive. They are not. This merger is bad for both consumers and workers.

Petebloodyonion513d ago

Not all I'm just saying that in no way shape or form did the FTC mention Worker before the merger and changing the tune would cause a loss of credibility.
Especially when the FTC has never had an issue with outsourcing jobs Outside of the USA when big acquisition happens.

rakentaja513d ago

There is unfortunately nothing to do if your boss wants to sell the company.

Sciurus_vulgaris513d ago

Undoing the merger will just cause ABK and Microsoft to cut more positions. Undoing the merger at this point will financially damage both companies. A more sensible thing would be to push MS and other game companies to have employee unions and increased job protections.

-Foxtrot513d ago

I think the telling thing will be if Microsoft buys another publisher and it’s allowed to go through despite all of this.

This should be the point where the FTC and other agencies put their foot down in the future to say “enough”

FinalFantasyFanatic513d ago

Idk, ABK is already a mess as it is, and that's before Microsoft got to it, the point is it never should have been allowed to happen, obvious outcomes were obvious.

Show all comments (95)
40°

Rematch is "chasing credibility" but not realism like rival EA FC

Pocket Tactics sits down with Rematch’s creative director, Pierre Tarno, to discuss why Sloclap moved away from Sifu to chase something new.

Read Full Story >>
pockettactics.com
660°

Microsoft planning “major” Xbox layoffs next week

The cuts are expected to be announced next week.

Microsoft is also planning thousands of job cuts that will impact other parts of it businesses

Read Full Story >>
theverge.com
1d ago Replies(1)
1d ago Replies(1)
Obscure_Observer1d ago

MFs has been beating their chests over great quarterly results and big profits to shareholders while firing people by the thousands just like Sony.

I wonder if at the top of those rumored layoffs they´ll also cancel upcoming or unannounced games while shutting down more studios as well.

1d ago
pwnmaster30001d ago

Always got to throw shade at Sony smh.
Yes we get it,
MS good Sony bad
MS bad Sony is also bad lmao

1d ago
Obscure_Observer23h ago

F* them both!

Just for the record, I don´t care about your victim complex crap either. Find someone else who cares.

blacktiger22h ago

He was talking about both. Why you getting offended when he's using both names

pwnmaster300022h ago(Edited 22h ago)

@Blacktiger

Im not offended , that’s just his formula lol
He can’t help help himself, he needs to bring Sony down when the topic involves MS.
Whether is good news for MS or bad, it some how leads to Sony doing bad lmao.
It’s actually hilarious.

InUrFoxHole17h ago

He's not wrong but im tracking what youre saying. In this case is should just be MS bad. Thats a lot of people fired

+ Show (4) more repliesLast reply 17h ago
Tacoboto23h ago

"just like Sony"

Gosh you're insufferable, not everything needs to be both-sides'd. Sony's had layoffs, but nothing like what Microsoft has been doing and is continuing to do.

CrimsonWing6923h ago(Edited 23h ago)

I mean, no offense, but this is why you’re not some corporate business person running a major corporation. Big profits don’t mean jobs are safe. Do you understand why things like this happen:

Cutting jobs to maintain or increase profitability, especially in underperforming divisions like parts of Xbox like other gaming divisions.

Corporate restructuring and relocating resources for strategic stability in ever changing markets and consumer behaviors.

Investor expectations and optimizing operations to maintain investor confidence. Whatever boosts stock prices and improves future margins.

And there’s many other factors at play. It’s never as simple as business doing well, everyone’s safe. That’s just you not understanding at all how corporations work and have been working since the beginning. This isn’t something that’s specific to Xbox, you can bet your ass Sony and Nintendo do this and if it’s not clear by now, game development is not a stable job nor has it ever been for many. A lot of developers are contractors and guess what happens when a project is done?

Ganif22h ago

Nintendo said they have no plans for layoffs, and you can't seriously claim that the scale of Sony's layoffs most of which involved Bungie which is self managed as even close to the same scale as what Microsoft has done since they purchased Zenimax. And that significantly less layoffs would have happened if those publishers had stayed independent. Keep in mind that much of these layoffs have been due to redundancies specifically related to these buyouts.

CrimsonWing6921h ago(Edited 21h ago)

@Ganif

Nintendo:

https://gamerant.com/ninten...

Sony:

https://gamerant.com/playst...

https://techxplore.com/news...

I don’t think it’s realistic to treat Sony’s layoffs as somehow outside the norm for the industry right now. Even if Bungie is self-managed, Sony’s cuts went far beyond that like Naughty Dog, Insomniac, London Studio being shut down completely, and multiple teams across the globe took hits. These weren’t just minor adjustments.

Nintendo, I had to look up and you’re right. They seem to be an outlier, but rest assured at some point it happens. And even then there’s been layoffs, albeit a smaller amount and contractors.

Would fewer layoffs have happened if studios from acquisitions stayed independent? Maybe. But even independents have been hit hard and look at what’s happened with Embracer’s fallout, or smaller devs like Digic, Roll7, or Volition. This isn’t just a “Microsoft problem” or strictly tied to acquisitions; it’s a broader correction happening across the whole industry, and unfortunately, layoffs are a big part of that process right now.

Ganif21h ago

From your article:

"According to reports, Nintendo of America restructured its testing operations, leading to layoffs of about 120 contractors, part of a strategy for global integration.

Nintendo of America, publisher of iconic franchises like Mario and Zelda, is shifting some contractors to full-time roles for better development integration."

Contractors are not employees, and even if you want to count them as that, it's 120 people vs around 7500 since Microsoft purchased Zenimax.

In an era of game industry layoffs, Nintendo is hiring more people
https://automaton-media.com...

Nintendo Announces 10 Percent Pay Raise For Devs Despite Lower Profits
https://kotaku.com/nintendo...

Nintendo CEO’s refusal to layoff staff goes viral following industry-wide cuts
"Satoru Iwata took pay cuts to ensure staff didn’t have to be let go"
https://www.nme.com/news/ga...

And as for Sony you're comparing less than 1000 total jobs to an estimated7500

Has the industry faced layoffs, yes, but that still doesn't account for the mass layoffs due to redundancies that was easily predictable, or that fact that at least 1/3 of Microsoft's layoffs and studio closures happened before the industry downturn.

thorstein20h ago(Edited 20h ago)

Take the L, Crimson.

People hate Nintendo, but Ganif proved why they deserve support.

+ Show (1) more replyLast reply 20h ago
-Foxtrot23h ago

It's like banging your head off a wall, he just can't help himself.

Microsoft can do no wrong, Sony sucks at everything and Nintendo is bigged up because it's less hassle than trying to defend Microsoft all the time

What's going to happen when Microsoft finally turn completely third party, then what?

anast22h ago

I enjoy Obscure. Obscure does good work.

crazyCoconuts22h ago

Did you know that the first n4g was designed to be a perfect human world? Where none suffered, where everyone would be happy. It was a disaster. No one would accept the program.

Tacoboto22h ago

I wouldn't be surprised at this point if anast and osbcure were both alts for the Admin.

We know how Obscure especially drums up additional comments and clicks with his spam-worthy remarks that somehow never get moderated

+ Show (1) more replyLast reply 22h ago
Profchaos19h ago

Thats business present a strong front to your shareholders while your company burns around you.

Keep shareholders happy at all costs andnif not happy keep them numb to the reality of you organisation

Angyobangyo10h ago

" Just for the record, I don´t care about your victim complex crap either. Find someone else who cares. "

Just for the record, you clearly you do if you have to vent this hard.

TheExecutioner7h ago

Basically you think like kids when it come to choose between candy or chocolate.

Sonic18816h ago(Edited 6h ago)

Are you and Anast the same person?

+ Show (7) more repliesLast reply 6h ago
23h ago
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140°

Sony Faces Class Action in the Netherlands Over Allegedly Inflated PlayStation Store Prices

Mass Damage & Consumer Foundation in the Netherlands has filed a class action against Sony for inflating PlayStation Store prices.

dveio22h ago(Edited 22h ago)

My personal opinion:

Manufacturers and publishers have indeed inflated the industry.

From $700 million development costs for games like Call of Duty, to digital (store) prices for games and DLCs, online multiplayer fees on consoles (why can you play Helldivers 2 online for free on PC but not consoles?) or still preventing sell/lend digitally purchased games.

Sometime in the future, this bubble will collapse.

They should know better, but they just can't help themselves and suck even the last penny out of our wallets.

BeHunted20h ago

Because Sony knows people will be forced to pay those prices for single player and multiplayer games, not everyone prefers PC gaming. Sony also has a monopoly on PlayStation digital games. In 2019, they stopped allowing retailers and game key sellers to sell PlayStation digital games, making them available only through the official PlayStation Store

anast22h ago

The Dutch gov. wants a piece of the pie.

Eonjay22h ago

They should be suing the individual publishers increasing the prices to $80 instead of suing the store. There are plenty of publishers still selling game for like $50 with much success (like E33). But this proves that the publishers are the ones setting the prices.... so again nothing changes because they aren't even going after the main offender. How is suing Sony going to make Microsoft not charge $80 for the next COD? Sony being the number one store in the market doesn't mean that publisher have to charge us an arm and a leg. Again the industry is laughing at us because consumers never get real representation. Just these fake platitudes that are meaningless.

BeHunted20h ago

"How is suing Sony going to make Microsoft not charge $80 for the next COD"

Because Microsoft doesn't have a monopoly, I can purchase Call of Duty at a huge discount from CDKeys or other gaming retailers. The only way to purchase digital PlayStation games is through the PlayStation Store.

djl348519h ago

Weird, I swore GoW, Stellar Blade, Horizon Zero Dawn, TLoU, etc. were on the steam store....uh.....

BeHunted15h ago(Edited 15h ago)

@djI3485

I'm talking about PlayStation games that you can only purchase on PlayStation. I can purchase Steam and Epic games from 3rd party retailers and key stores.

"Sony to stop selling full-game download codes at retailers"

https://www.videogamer.com/...

Killer2020UK20h ago

About time. There is zero fair reason why digitally distributed products that you cannot recoup any value when you want to dispose of them, should be priced higher than that of physical copies that entail all of the costs and the benefits of owning.

Show all comments (12)