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Microsoft is laying off 1900 Activision Blizzard and Xbox employees (8% cut from the Gaming Division)

GHG

Gold Member
lol y

Begged for their own demiseā€ Dafuc does that mean? Usually I just watch but had a friend affected by this. You all seem to be reacting as if most of these people are facing a life-or-death situation let's relax a bit. While it's unfortunate, there are various outlets and individuals offering opportunities to those affected. It's likely that they were aware of this possibility, similar to some armchair developers in here. Instead of demeaning them, let's approach this with understanding.

If that individual you know wasn't supportive of the merger then they have my sympathies.

However if they were supportive, history would have showed them acquisitions of this size rarely result in anything good for the company that gets swallowed up. It's well documented at this stage, hence it was *gasp* one of the concerns outlined by all of the regulatory bodies that gave this a thorough look.

Time and time again the only people that profit and benefit from these big ticket acquisitions are the executives at the top who can ride off into the sunset with big bags of cash in tow.
 

Elog

Member
Since it is obvious from social media that these layoffs cut rather deep into the development teams (not just legal, HR duplicates etc), this is a rather weird step.

MS has failed at developing strong AAA development teams over the years. Totally failed. They acquired some really good ones with associated culture with this merger and their first shot from the hip is to cut deep into these with layoffs?

Strategically, I find this completely counterintuitive based on the communicated strategy. Maybe the rumours about going multiplatform and simply be a developer among many with profit rather than growth focus are true? If that is the case, this move makes much more sense.
 
If that individual you know wasn't supportive of the merger then they have my sympathies.

However if they were supportive, history would have showed them acquisitions of this size rarely result in anything good for the company that gets swallowed up. It's well documented at this stage, hence it was *gasp* one of the concerns outlined by all of the regulatory bodies that gave this a thorough look.

Time and time again the only people that profit and benefit from these big ticket acquisitions are the executives at the top who can ride off into the sunset with big bags of cash in tow.
I understand your point. But many employees have no control over such mergers, and it's primarily a decision made at higher levels. Let's refrain from demeaning the employees who are often caught in circumstances beyond their control. Also Living in a capitalistic world, expecting a different system can be considered ignorant. If you desire change, it's crucial to focus on reforming the system through voting and altering the structure. Constantly dwelling on the same issues without action can indeed become repetitive and frustrating.
 

Killjoy-NL

Member
Since it is obvious from social media that these layoffs cut rather deep into the development teams (not just legal, HR duplicates etc), this is a rather weird step.

MS has failed at developing strong AAA development teams over the years. Totally failed. They acquired some really good ones with associated culture with this merger and their first shot from the hip is to cut deep into these with layoffs?

Strategically, I find this completely counterintuitive based on the communicated strategy. Maybe the rumours about going multiplatform and simply be a developer among many with profit rather than growth focus are true? If that is the case, this move makes much more sense.
This sums up MS pretty well.

Also, where is Phil Spencer?
His silence is starting to speak volumes.
 
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cormack12

Gold Member
When the people got their way and Bobby finally left ABK
tV68oIU.jpg


1 month later
Shocked Uh Oh GIF
 

Nvzman

Member
It's more about the optics. Yes the Sting concern was cheap but for a $3 trillion big corpo if $500K is chump change, so is whatever few millions spent in salaries for 2K employees over the course of a year. Yet they were more willing to party with Sting than dock a few hundred grand off the multi-millions the upper-level execs get so they could keep more people employed.
Let's just say each of these 2,000 employees made $50,000 a year (which is probably extremely off-base, most of them, especially managers and higher-ups, are probably making double that), 2,000 * $50,000 = $100,000,000. 100 million dollars, and thats before healthcare costs (idk if MS charges employees for healthcare or not), bonuses, equipment costs, etc.
100 million dollars is a totally different ballpark even for a giant company than $500,000. That was my point. Those "events" and executive bonuses absolutely dwarf actual employee salaries. It only looks bad because nobody actually does the math and because of the proximity to the layoffs. But I'm not really interested in defending MS of all companies like I said before, so their poor optics are a warranted criticism.

Im going to fix your statement,

Executives carry more responsibility. Definitely not usually the hardest working, milage varies greatly on that.
Thats fair, but I think that also depends on your definition of "hard work". Imo flying out everywhere for clients/stockholders/other executives/regulatory bodies, constantly negotiating deals, and also providing high-level management for a massive company is absolutely hard as hell work. Especially when unlike normal salaried staff, you are likely not coming home to your wife and children every day of the week, you'd be lucky to have a few days home a week. But yes, milage does vary, completely depends on the size and complexity of the company.
 

JohnnyFootball

GerAlt-Right. Ciriously.
They took a $70bil shot to take CoD away from PS and they missed.
But they lost other games that generate billions upon billions in revenue such as....checks notes...Crash Bandicoot, Hexen, Heretic, Singularity....

Naw...Call of Duty is the only significant franshise from ABK. I guess you could include Warcraft/Starcraft and Diablo. Unfortunately for MS another Diablo game wont come for another 10 years or so, long after Xbox is 3rd party. Warcraft was never on Xbox or PS, so that changes nothing.
 

graywolf323

Member
Our favorite journalist on TV talking about Microsoftā€™s gaming division in utter chaos right now


itā€™s just crazy to me that Microsoft didnā€™t actually bother to inform all those affected directly before announcing the layoffsā€¦ instead theyā€™re freaking out after hearing the news & like Jason mentioned some find out just because suddenly their Slack account has been deactivated, sounds like a total nightmare over there and definitely feel bad for anyone effected by this BS

 
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JohnnyFootball

GerAlt-Right. Ciriously.
There's a difference between spending endlessly and trying to be more efficient.

If Xbox was doing that bad for 22 years, MS would had canned Xbox long time ago. RROD alone should had killed it making 360 the last system.
The sad fact is that we don't truly know how much profit Xbox made since MS hides their numbers. We can be quite sure that it isn't that profitable, it at all. If it were profitable MS would share those numbers since that is business 101. Yes, they bring in a TON of revenue from gaming, but how much of that is profit is what truly matters.
 

SF Kosmo

Al Jazeera Special Reporter
This tells me they're expecting this acquistion to be less of a "limited integration" compared to their others. Like Bethesda still more or less operates their own (redundant) publishing arm, with its own PR and marketing and is fairly autonomous, I'm guessing they're looking to make large portions of Activision redundant.

Which is awful for the people working there. Some of the stories I have heard about individuals laid off are heartbreaking.

But as a business strategy I maybe understand it more, particularly when we're talking about a company with the kind of institutional dysfunction and baggage as Activision Blizzard.
 

cormack12

Gold Member
Unfortunately that's probably an admin issue. They have to have a cutoff point when all accounts are disabled in batch. And in the plan there will be assumption of when that is. So it will be the comms that have wrong.

Would prob make sense if they disabled them one evening and either had a meeting first thing or send out an email in the day saying expect a message after 8pm but w/e
 

StreetsofBeige

Gold Member
The sad fact is that we don't truly know how much profit Xbox made since MS hides their numbers. We can be quite sure that it isn't that profitable, it at all. If it were profitable MS would share those numbers since that is business 101. Yes, they bring in a TON of revenue from gaming, but how much of that is profit is what truly matters.
MS doesn't share profits by specific product line. I think they only do it at pillar level and every product line in that pillar gets lumped together into a grand total.

Apple doesn't either. In fact Apple doesn't even state profits per pillar. They only state it in two vague buckets. Products (includes all Mac, Phone, Watches etc...) and Services (which I think is downloadable stuff and warranty/repair fees).

Just because Apple and MS dont state exact profits per product doesn't mean it's not profitable.
 
It really, really needs to be investigated at this point. Big corpos using plants to sabotage M&A targets should be illegal. It isn't a coincidence Ybarra did this with Nokia, and now again with ABK.

There's a pattern. He just better stay the hell away from Sony, Nintendo, all of the Japanese 3P publishers, Take Two and CDPR.

Like put him on a "No Hire" list or something. Can't say it's discrimination when he's the only one on the list.
Ybarra didn't go to Nokia. That was Stephen Elop, you're thinking about.
 

NickFire

Member
But as a business strategy I maybe understand it more, particularly when we're talking about a company with the kind of institutional dysfunction and baggage as Activision Blizzard.
Dysfunction and baggage?

Look at the sales charts. Pick any year.
 
I bet all the Activision employees now wished Bobby K was still CEO. I dont think he gassed tons of employees.

Although it doesn't say how the 1900 are split being Activision, Xbox gaming studios and maybe that also includes Xbox hardware/services kind of departments.

These employees hated ABK and got fat compensation for their RSUs. Many wanted to leave anyways, but the industry is in flux in terms of hiring.

Rumor is that Sony set up a new studio under Blundell to recruit top talent from ABK. We'll see if that comes to be.
 

Stooky

Member
Thats fair, but I think that also depends on your definition of "hard work". Imo flying out everywhere for clients/stockholders/other executives/regulatory bodies, constantly negotiating deals, and also providing high-level management for a massive company is absolutely hard as hell work. Especially when unlike normal salaried staff, you are likely not coming home to your wife and children every day of the week, you'd be lucky to have a few days home a week. But yes, milage does vary, completely depends on the size and complexity of the company.
Hard work for me is hours put into a day. and the duration you are working over that 8 hr day. Ive seen artist crunch for year+, were the execs doing that? no. Periodically they fly out businsess, but not many execs are in the "trenches" The divide that i see has always been with responsibilities. i just have to do good art work which depending on the project can be hard work with long hour however I'm not responsible for 2000+ people and the overall success of the project.
 
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DaGwaphics

Member

Well, it probably will be for the 91% that are left. LOL

The cut backs are quite clearly an industry wide phenomenon, and something that doesn't require any kind of merger or anything like that. The economy isn't in that great of shape for industries that are purely in the discretionary category. Seems like everyone in the gaming space is bracing for the next couple years to be less than ideal for them.
 

GHG

Gold Member
Well, it probably will be for the 91% that are left. LOL

The cut backs are quite clearly an industry wide phenomenon, and something that doesn't require any kind of merger or anything like that. The economy isn't in that great of shape for industries that are purely in the discretionary category. Seems like everyone in the gaming space is bracing for the next couple years to be less than ideal for them.

Oh I'm sure all of this fills those remaining with so much confidence.

It's looking more and more like the person who benefitted the most from this is Kotick. The "bad guy" won, once again.

Fission Mailed.
 

Fredrik

Member
This is a real stinker to be honest. Would the folk at Activision Blizzard had lost their job if ABK werenā€™t acquired?

And Jez about retail, Xbox games going away from retail is more or less pulling the plug on Xbox as a traditional console. I knew it would happen but not this soon and not without a new generation launch. I guess they think the rumored slim is enough but thatā€™s really not the box to do this transition on. Lots of strange moves here.
 

Stooky

Member
hearing rumblings Diablo....... :messenger_frowning_ Blizzard is getting hit hard with this. and its not execs like some are posting on here.
 
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