Xbox owner Microsoft is to cut about 650 staff from its gaming division in a new round of job losses after its $69bn (£54.3bn) merger deal. The software giant said staff working in "mostly corporate and supporting functions" worldwide would be affected. It laid off 1,900 staff in January and, in May, closed four studios bought before its purchase of Call of Duty maker Activision-Blizzard. Microsoft's purchase of Activision-Blizzard in October also included Candy Crush maker King and followed its buyout of Zenimax, which owns Fallout maker Bethesda. Mr Spencer told staff Microsoft had tried to "minimise disruption" as it brought in new teams in the months since the multibillion-dollar acquisition. Mr Spencer acknowledged the news would be "difficult" for workers and thanked those affected for their contributions to the company.The games industry has been hit by mass layoffs over the past two years following a rush of investments and acquisitions amid record profits and player numbers during the Covid-19 pandemic. PlayStation maker Sony, League of Legends creator Riot Games and Fortnite owner Epic have been among those to lay off hundreds of workers.Sales of Xbox hardware have fallen since last year though, and the company has been trying to expand its software sales. Xbox showed off a string of upcoming games from its studios in June, including Call of Duty: Black Ops 6. The showcase was praised as one of its best in years, but the company has also upset fans by raising the prices of its Netflix-style Game Pass service and by announcing plans to release certain games on rival consoles.
