Microsoft has announced significant layoffs within its gaming division, impacting approximately 4% of its workforce, which translates to about 9,100 employees. This restructuring aims to position the gaming sector for future success by prioritizing strategic growth areas. Xbox boss Phil Spencer elaborated on the changes in a memo, expressing appreciation for the contributions of those affected while underscoring the necessity for tough decisions amid a highly competitive industry landscape. The latest round of layoffs particularly affected the Candy Crush developer, King, as well as parts of Bethesda. This marks the fourth set of layoffs in 18 months as Microsoft shifts focus to enhance its platform and game lineup.

nWhat recent changes have been made in Microsoft's gaming division?

Recent changes in Microsoft's gaming division include significant layoffs affecting 4% of its workforce to focus on strategic growth areas. This restructuring is part of a series of cost-cutting measures aimed at enhancing Microsoft's gaming platforms and future opportunities.

Microsoft's gaming division has faced challenges since acquiring Activision Blizzard for $69 billion. This acquisition followed numerous layoffs, which began early in 2024. The changes come as Microsoft prepares for the release of next-gen Xbox consoles and aims to solidify its presence in a competitive gaming market, all while maintaining a strong commitment to delivering high-quality gaming experiences.