Microsoft is planning layoffs within its Xbox team, following a trend of cost-cutting that includes earlier cuts of 3% of its global workforce and an additional 9,000 jobs. The King division is cutting 200 positions, totaling 10% of its staff. Phil Spencer, CEO of Microsoft Gaming, emphasized the necessity of these changes for future success, despite current growth. These layoffs mark the fourth round within 18 months and follow a recent $69 billion acquisition of Activision Blizzard, highlighting ongoing challenges within the gaming sector.
"I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger."
"The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities."
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