In January, Microsoft introduced it was making mass layoffs throughout its gaming division, with round 1,900 jobs being lower throughout Xbox Recreation Studios, together with Activision Blizzard.
Earlier this month, the FTC argued to the U.S. Court docket of Appeals for the Ninth Circuit that the layoffs “contradicts the foregoing representations [Microsoft] made to this Court docket.” The FTC’s argument added that “Particularly, Microsoft reportedly has acknowledged that the layoffs have been a part of an ‘execution plan’ that would cut back ‘areas of overlap’ between Microsoft and Activision, which is inconsistent with Microsoft’s suggestion to this Court docket that the 2 firms will function independently post-merger.”
Now, Microsoft has made its personal response (thanks, The Verge). Throughout its argument, it claims that the FTC’s “assertions are incomplete and deceptive.” It additionally argues that the layoffs cannot be wholly the results of the merger: “Per broader developments within the gaming trade, Activision was already planning on eliminating a big variety of jobs whereas nonetheless working as an unbiased firm. The current announcement thus can’t be attributed totally to the merger.”
Microsoft’s acquisition of Activision Blizzard was an extended and complicated enterprise, involving a variety of backwards and forwards with competitors regulators and the FTC, and was lastly accomplished late final 12 months for an eye-watering $69 billion. The gaming trade as a complete has seen frequent bulletins of mass layoffs lately, and the newest report suggests Microsoft’s layoffs have hit Crash Bandicoot developer Toys for Bob.
It is an unsure time for Microsoft, which is about to share “its imaginative and prescient for the way forward for Xbox” subsequent week after fixed rumours of Xbox exclusives making the transfer to PlayStation and Nintendo. We’ll maintain a watch out for extra.