290°

Microsoft to Ax 5,000 Jobs, Reports 11 Percent Loss in 2Q Profit

Fox News: "The layoffs appear to be a first for Microsoft, which was founded in 1975, aside from relatively limited staff cuts the software company made after acquiring companies.

The company announced the cuts as it reported an 11 percent drop in second-quarter profit, which fell short of Wall Street's expectations. Microsoft shares plunged 7 percent in pre-market trading."

PoSTedUP5663d ago

MS expect to lose 4.7B.

sony 3.4B loss.

economy is takeing its course...

Simon_Brezhnev5663d ago

yep yep and microsoft i think they hurt more because they have a lot less employees then sony and loss a lot more money

rhood0225663d ago

Sony's losses are only US$2.2 billion. The $3.38 billion is AUD$. Since Fox is reporting in US$ then that's the correct comparison.

IdleLeeSiuLung5662d ago

The summary above is incorrect, their profits slipped about 700 million dollars, but they are still in the positive. Profit went from expected 4.71 to actual 4.17 billion.

This is a smart company that cuts jobs in advance instead of holding onto dead weight. However, I'm suprised how drastic the cuts are though for a company with so much cash and still in the positive.

The Lazy One5662d ago

not the summary.

They don't expect to lose anything. A retard just added his own misinterpretation to the end of the summary.

DaKid5662d ago

Nice quote from the article "Microsoft expects to lose about $4.17 billion, or 47 cents per share, losing all the sharing they got from earnings of 50 cents per share. Bad news from Microsoft seems to worsen as the years advance"

When the article really says "The Redmond-based company says profit slipped to $4.17 billion, or 47 cents per share, from year-ago earnings of $4.71 billion, or 50 cents per share."

Lame news reporting there

poindat5662d ago

Dead weight? Like the Zune?

:)

+ Show (3) more repliesLast reply 5662d ago
Naked-Snake5662d ago

Hmmmmm, I thought Sony was the one in trouble?

Why dis5662d ago

They are...

They're not making a profit nor does the monthly tracking companies report good news for PS3.

DJ5662d ago

You have to remember that they're still making boatloads of cash off of PS2 and PSP. PS3's doing quite well with 20 million units on the market and 17 million PSN members.

But yes, the division needs PS3 to pull ahead much faster, and the only way to do that is with more games and a lower price point. 2009 is supposed to be the year that PS3 becomes profitable for Sony, so hopefully they'll pull it off.

Vecta5662d ago

Well before the economic crisis Sony was only making about 1.6 billion a year in profits, whereas Microsoft was making around 11 billion a year in profits. So yeah I would say Sony is the one in more trouble.

Captain Tuttle5662d ago (Edited 5662d ago )

The description is wrong. MS's profit slipped TO $4.17 billion FROM $4.71 billion. They still made a profit, just less than last year and less than the were expecting.

Still not good news.

Mr_Zkaar5662d ago (Edited 5662d ago )

All corporations are feeling the pinch, except when it's Sony then the Xbots come out of the woodwork.

Why dis5662d ago (Edited 5662d ago )

Sony made a profit?

Love the massive Xbox divion losses room on the front page when the truth was just a studio being axed in Microsoft games studios that made games for PC. PC studio some how became news about the xbox side of MGS. lol

GiantEnemyCrab5662d ago

Unlike the Sony zealots who have no woodwork they are always out in full force.

I don't want to hear another say that it's all Sony doom and gloom and MS gets a pass.

Blademask5662d ago

Come on man, I can probably find 40-50 "DOOMED" stories from last month alone, MS has maybe 4 stories about the same issue which was rumored earlier on. Its definitely not the same as the bs sony doomed articles based on 1 npd man.

a handful of news sources, not random blogs saying "MS HAS CUT STAFF" is the same as jpbody's blog saying "Bluray Killed the PS3? Just look at NPD!" and getting approved over and over on this site?

MS fanatics can't take it, but they sure as hell can dish it out.

Show all comments (52)
90°

World of Warcraft developers form wall-to-wall union at Blizzard Entertainment

The new unit comprises over 500 developers representing the entire World of Warcraft development team.

Read Full Story >>
gamedeveloper.com
2d ago
XiNatsuDragnel1d 21h ago

Unions in gaming are necessary fr fr

montebristo1d 9h ago

I used to be anti-union, it kills productivity, investment and turns product mediocre. Their games suck anyways though so what was lost? Might as well get their people paid until they are dissolved.

shinoff21831d 9h ago

Unions are necessary regardless of how you feel. You know how fked the working class would be without them. As if we're not already.

montebristo1d 8h ago

No they aren’t, regardless of how you feel. Unions make zero sense for skill based labor. They are for people who press a button every 10 seconds on an assembly line. “working class” is a made up term. I don’t care about corporations or developers, I just want good games lol. Killing your incentives to appease the lowest common denominator doesn’t lead to great games imo

montebristo1d 2h ago (Edited 1d 2h ago )

I wasn’t trying to be offensive if I came off that way. The Union is an old mentality and I can see their usefulness but also the danger. We’re in the age of AI and robots and skill based labor. Unions can be dangerous these days. You could replace your entire workforce in one move. Checkmate. Look to the kiosk replacing workers in the 20 dollar minimum wage era.

Well run businesses don’t need unions. If you need a Union that business won’t survive anyway. Unless it’s propped up by the government with corporate welfare (which is the real issue). If you’re not going to spend some on your workers (Amazon, Google) then your welfare is cut off. No tax breaks. All you put together don’t match their wealth and resources, the union is a traditional memory at this point and counterproductive with this new enemy we face. They need a flying elbow from the top ropes. And by “working class is a made up term” I just mean we’re not a class system and even CEO Bobby Kotick puts in a days work lol. Or did.. It’s just a vague term that doesn’t mean anything no offense lol. People say “middle class” but that can change quick right? Up or down. That’s not a “class system”.

80°

The 'Kawaii' Is A Nintendo Wii The Size Of A Keychain

Modders have cooked up something pretty special – a Wii console which is small enough to fit on your keys. A wee Wii.

Read Full Story >>
timeextension.com
100°

Humble Games Lays Off Entire Team

Another studio has held layoffs, this time its Humble Games letting go of its entire QA team according to social media posts.

Read Full Story >>
insider-gaming.com
aaronaton2d ago

Why QA a game when the general public do it now....

anast2d ago

They will rehire cheaper labor during the restructuring. The stupid thing is that they are struggling and the first thing they do is lower the quality.