Microsoft lays off 1900 ATVI/Blizzard/XBox employees

4,388 Views | 39 Replies | Last: 24 days ago by Artorias
Artorias
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Between the layoffs end of '23 and the first month of '24, the game industry is absolutely brutal right now.

5800+ industry layoffs just in January, and that is not counting the thousands laid off last quarter.

https://www.ign.com/articles/microsoft-lays-off-1900-staff-from-its-video-game-workforce


jja79
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It's not just gaming.
Average Joe
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I imagine it's mostly redundancy already identified during the purchase.
bluefire579
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Average Joe said:

I imagine it's mostly redundancy already identified during the purchase.
There's a lot more than that. Also doesn't sound like MS has handled this well at all.





This is following up the Riot layoffs earlier this week (530 people).
bluefire579
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Seeing on Twitter a bunch of OW2 folks were let go as well. Imagine a clearer picture will bubble up as people get past the initial shock of the layoffs.
Ghost of Bisbee
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Wasn't surprised to see MSFT trim the redundancy, but I was surprised to see how many. 1900 is absurd. Isn't that 10% of the gaming division at MSFT-ABK now?

I don't recall the last time layoffs were this bad in the games industry. My org has yet to have mass layoffs, but feels like the other shoe could drop any minute… all of our budgets have been slashed, but we are continuing to hire contractors
Scruffy
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My wife was talking about this last night.
She has a former co-worker who ended up working at Activision.

Ends up the people on his team, while producing some great stuff, generally only worked 15hrs a week.

While it sucks to be impacted, I think companies are really opening their eyes and thinking they should be getting more for what they pay people.
Cromagnum
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jja79 said:

It's not just gaming.


This. Layoffs are coming for everyone soon. 2023 numbers were terrible and companies still want growth despite all the outside factors making it impossible.
Claude!
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Add to that the fact that Microsoft has been on a buying spree. With the Activision purchase, there are bound to be a ton of "synergies" to take advantage of. The purchase plan almost certainly factored in a bunch of cuts, i.e., "for this deal to work, we have to cut $100M in salaried positions".
Ghost of Bisbee
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Cromagnum said:

jja79 said:

It's not just gaming.


This. Layoffs are coming for everyone soon. 2023 numbers were terrible and companies still want growth despite all the outside factors making it impossible.


The scale of tech and video game industry layoffs over the last year is the largest I've ever seen. This is more than just cyclical movement. Games industry in particular massively overhired in 2021 and 2022, in large part I think due to aggressive forecasts stemming from the pandemic boon and low cost of capital.
Tibbers
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I'm curious which jobs these employees being fired actually held. Perhaps this is just a sign of the times that AI can actually replace jobs and create similar quality faster and cheaper.
C@LAg
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Microsoft Games Division (or whatever it is called these days) is in a royal fluster****

they are looking to outsource even more of their game development, and that includes the Activision titles.

There was a report today they are looking at outsourcing the development of future Call of Duty titles.

The problem is... Microsoft's own corporate policies, which they refuse to change for the entertainment division.. limits contractors to 18 month cycles and then they HAVE to go on a cool-off period.

So teams get put together, staff ramps up, gets familiar with stuff, starts working, and then the contractors are forced to go into unpaid time off. And the next wave of grunt hit the floor.

It is a mess and part of the reason the Xbox brand is stumbling/almost falling bigly.

Sponge
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There is no such thing as AI and llms are not replacing a single developer, artist, or modeler/animator.
There will be lots of manager/product overlap with the buyout that can be trimmed.
IrishAg
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Ghost of Bisbee said:

Cromagnum said:

jja79 said:

It's not just gaming.


This. Layoffs are coming for everyone soon. 2023 numbers were terrible and companies still want growth despite all the outside factors making it impossible.


The scale of tech and video game industry layoffs over the last year is the largest I've ever seen. This is more than just cyclical movement. Games industry in particular massively overhired in 2021 and 2022, in large part I think due to aggressive forecasts stemming from the pandemic boon and low cost of capital.
Tech industry overall is in the midst of a reduction from that over hiring post covid. In addition to pandemic boon ending you mentioned, you have a lot of activist investors in most of the large tech companies pushing to get back to pre covid job numbers to improve their operating margins and bumping up stock price (which is pretty much the main driver for all large public companies these days).
YouBet
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Scruffy said:

My wife was talking about this last night.
She has a former co-worker who ended up working at Activision.

Ends up the people on his team, while producing some great stuff, generally only worked 15hrs a week.

While it sucks to be impacted, I think companies are really opening their eyes and thinking they should be getting more for what they pay people.


This could explain why it takes 6 years to make a game like mentioned above. That is absurd in my uninformed game making opinion.
bluefire579
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YouBet said:

Scruffy said:

My wife was talking about this last night.
She has a former co-worker who ended up working at Activision.

Ends up the people on his team, while producing some great stuff, generally only worked 15hrs a week.

While it sucks to be impacted, I think companies are really opening their eyes and thinking they should be getting more for what they pay people.


This could explain why it takes 6 years to make a game like mentioned above. That is absurd in my uninformed game making opinion.
Blizzard has always allowed their projects to incubate for a long time. Typical development cycle for a AAA varies, but in general, games these days are so complex from just about every standpoint that it just takes a long time. That 15 hrs a week is anecdotal and in my experience is an outlier as far as what game makers typically work.

I mean, the current game I work on is a fairly straightforward mobile game, and we're still only soft launched in a couple of territories after 3 years of work on it, and that's with all internal developers working full time plus contractors from various outsourcing. Putting out a console or PC game (let's even ignore cross-console releases) has a whole additional array of complexity in just about every aspect.

It's also important to note that often, a lot of the upfront time is preproduction, which is done by a small team doing things like planning, concepting, storyboarding, prototyping, and such to ensure the project is set up to succeed.
AustinAg2K
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From what I can tell, all the layoffs the past two years in the tech sector have been at big shops that likely over hired during the pandemic. Tech jobs are still in major demand at smaller companies who kept their staff levels reasonable. Those being laid off should have no problem finding another job... Of course, they might have to take a massive pay cut as most places don't pay nearly as high as the FAANG companies.
The Fife
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The time between Mass Effect 1 and 2... about 2 1/4 years. It seems pretty much instant compared to now.
Claude!
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The Fife said:

The time between Mass Effect 1 and 2... about 2 1/4 years. It seems pretty much instant compared to now.


BioWare better not **** up the next one, but I am not optimistic.
bluefire579
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Bioware is pretty much back to a prove it state for me instead of an automatic buy...a lot to overcome between brain drain and EA meddling
Claude!
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bluefire579 said:

Bioware is pretty much back to a prove it state for me instead of an automatic buy...a lot to overcome between brain drain and EA meddling
The last three games they've released:
1. Mass Effect: Legendary Edition (2021)
2. Anthem (2019)
3. Mass Effect: Andromeda (2017)

Geez, I didn't realize it's been that lean.
The Fife
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Claude! said:

The Fife said:

The time between Mass Effect 1 and 2... about 2 1/4 years. It seems pretty much instant compared to now.


BioWare better not **** up the next one, but I am not optimistic.
Don't worry, I bet it'll be 2029 by the time they actually release anything. That's plenty of time to screw things up in all kinds of new and creative ways.
rhutton125
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Bioware is dead, Blizzard is dead, Bethesda… unknown. Haven't played Starfield. But the first two are shells of their former glory, no question. And I say this as the world's biggest Mass Effect fan.

All hail Larian and (for now) CD Projekt Red. We'll see who else can step up.
BadMoonRisin
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starfield was shockingly mid and, after even a few hours of gameplay, repetitive and boring.. Bethesda is no longer on the auto-buy list, i hate to say. And I have dumped untold hours into almost every single one of their fallout and elder scrolls games.

Sad times.

Not going to lie, I had more fun playing Outer Worlds than I did Starfield.
Aggie_Journalist
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Microsoft's contracting rules are the result of a lawsuit

They had all these contractors working for years without ever being hired and so they never got benefits and felt exploited. The contractors eventually sued.

So now MSFT sticks to that X-month stint then cool off rule.

It's annoying as heck for agencies.
Thanks and gig'em
Artorias
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rhutton125 said:

Bioware is dead, Blizzard is dead, Bethesda… unknown. Haven't played Starfield. But the first two are shells of their former glory, no question. And I say this as the world's biggest Mass Effect fan.

All hail Larian and (for now) CD Projekt Red. We'll see who else can step up.
Bioware died when the two original owners left the company. Blizzard has lost most if not all of their original leadership. Bethesda has stumbled with their last couple big bets, although they did salvage Fallout76 into a decent game after a while. They have one more big shot with Howard at the helm with ES6, after which I would not be surprised to see Howard retire.
jokershady
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Scruffy said:

My wife was talking about this last night.
She has a former co-worker who ended up working at Activision.

Ends up the people on his team, while producing some great stuff, generally only worked 15hrs a week.

While it sucks to be impacted, I think companies are really opening their eyes and thinking they should be getting more for what they pay people.


bluefire579
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Folks at Ubisoft definitely feeling like their turn is around the corner: https://insider-gaming.com/inside-ubisoft-from-low-morale-to-internal-tensions/
MaroonStain
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There's a YT streamer who worked at Blizzard as well as his father. He said it was awful conditions and lower than industry pay.
Artorias
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Blizzard is know for not paying well, unless you were in senior leadership positions. They could get away with it because so many people wanted to work there, and would take a lower salary to do so. That being said, once you have a project or two at Blizzard on your resume, you could pretty much go anywhere you wanted.
Artorias
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bluefire579 said:

Folks at Ubisoft definitely feeling like their turn is around the corner: https://insider-gaming.com/inside-ubisoft-from-low-morale-to-internal-tensions/
I would be concerned if I worked at Ubi. When was the last time they had a hit game? They continue to try to milk the Assassin's Creed franchise, the last few Ghost Recon games have failed, and their long-in-development pirate game Skull and Bones just came out in open beta and does not look great. I am holding out hope the next Division game is decent. I played alot of Div 1 and Div 2. Although the end game gear grind of Div 2 was a terrible RNG design.
bluefire579
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From what I can find, Assassin's Creed Mirage did pretty well, but yeah, not too confident in their future. They didn't market the Avatar game at all and dropped it in mid December, so that one seemed set up to fail. Doesn't feel like they've marketed the new Prince of Persia game at all either, though that seems to have gotten a really good critical reception. Guess the upcoming Star Wars game will give them a boost, but not sure beyond that.

With regard to Blizzard pay, in a purely anecdotal sense, I've talked to Blizzard recruiters a couple of times. The first time, probably 6-7 years ago, they were pitching the bonus as a pay increase, with a base at the same I was making at the time in Texas for a role in Irvine, so that was a nonstarter. The more recent time was more in line with what I was looking for, but accepted my current role first. I believe California requires salaries to be posted now, so should be pretty easy to see what they're at currently.
bluefire579
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Good article from IGN talking about the layoffs over the past year plus: https://www.ign.com/articles/ive-never-seen-it-this-bad-game-developers-explain-the-huge-layoffs-hitting-riot-epic-and-more
bluefire579
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Not to be outdone, Sony announces layoffs of their own: https://sonyinteractive.com/en/news/blog/difficult-news-about-our-workforce/?sf271923331=1
Madmarttigan
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Perhaps all these triple AAA developers are realizing their departments are a bloated mess putting out crap products, or at least that is largely the case at Blizzard these days.
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