An Xbox Games layoff will be taking place as Microsoft plans to cut off 650 jobs due to budgetary constraints. The eliminated jobs mostly involve those working in supporting and corporate functions.

Microsoft is continuing its streak of laying off its employees. This is especially apparent in its gaming venues. This recent layoff comes months after Microsoft closed four game studios: Alpha Dog Studios, Arkane Austin, RoundHouse Games, and Tango Gameworks. The four studios were subsidiaries belonging to Bethesda. Additionally, around 1,900 jobs were laid off from Activision back in January.

It should be of note that the Xbox Games layoff does not include any game development positions as it only focuses on the corporate and support functions. It came after the acquisition of Activision Blizzard in 2023 so the job cuts are due to Microsoft's aim to integrate teams and save on resources.

Xbox Games Layoff: More companies are laying off game studios

Microsoft is not the only company cutting down jobs as companies such as EA (Electronic Arts), Sony Group Corp., and Take-Two Interactive Software Inc. have all partaken in shutting down huge projects. For instance, Sony withdrew Concord, a multiplayer video game a mere two weeks after the game was officially released. It has been said that Sony did not have the patience to wait around for the game to take off. The company might have expected an instant hit especially since it allocated a big budget towards Concord's development.

Most of the time, budget cuts are the reason these bug companies go ahead with the job layoff. Most of the time, job security is not provided. Microsoft has stated that it would provide its laid-off US employees with exit packages to help them in their transition period. Exit packages may differ outside the US.

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