The gaming industry is currently facing a significant upheaval with the recent announcement of extensive layoffs at Xbox and Activision Blizzard. This development has taken many by surprise, affecting a wide range of positions from executive levels to quality assurance teams.
Jez Corden of Windows Central has reported that Activision Blizzard's entire internal customer support teams have been dismissed, except for a few individuals. This move is part of a broader strategy by Microsoft to outsource support to various companies, marking a significant shift in how customer service operations are managed within the gaming giant.
Microsoft has also shut down departments dedicated to bringing Xbox games to physical retail ... which if you've seen the digital-only Xbox console leaks ... well, you can get an idea of where Microsoft is going here.
— Jez (@JezCorden) January 25, 2024
Moreover, Microsoft is taking a decisive step away from physical media, with departments dedicated to distributing Xbox games in physical retail stores being shut down. This indicates a future where Xbox consoles, starting with the next iterations of the Xbox Series X, might be exclusively digital.
The layoffs have left many employees in limbo, with some reaching out to Bloomberg's Jason Schreier on Twitter to find out if they have been affected. The uncertainty and lack of official communication from Microsoft add to the anxiety and speculation within the gaming community.
For more detailed insights, internal memos from Xbox's Phil Spencer and Activision's Rob Kostich have been shared, providing some context to these drastic measures.
This situation is still developing, and the full impact of these layoffs on the gaming industry, particularly on game development and customer service, remains to be seen. Stay tuned for more updates as this story evolves.
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