Phil Spencer Believes Activision Layoffs Were Necessary For Profits

Expert Verified By

Spencer Says Job Cuts Were Unavoidable!

Story Highlight
  • Microsoft had some of gaming’s biggest job cuts this year.
  • Phil Spencer believes that layoffs were a necessary evil for Xbox to stay afloat.
  • He thinks that the growth of the console industry has also stalled.

Not too long ago, Microsoft laid off around 2000 developers, and most of the impacted workers were a part of the Activision Blizzard team. While Xbox clarified that the layoffs were already planned before the acquisition, Phil Spencer has now stated that the job cuts were necessary.

Why it matters: Xbox has been trying different strategies this year to grow the console market and to be more profitable in the industry.

Phil Spencer Xbox
Phil Spencer Has Been Giving His Best To Grow The Xbox Business

During a recent interview with Polygon, Phil Spencer talked about multiple things going on in the gaming industry, including the recent layoffs and the lack of growth in the console market.

Spencer was asked whether the layoffs at Activision Blizzard were a part of the wider trend or if there was something else behind the layoffs. He replied that it was a little of both, and since the console market isn’t growing, layoffs are necessary to remain profitable.

Iโ€™ll say the thing that has me most concerned for the industry is the lack of growth.

-phil spencer

He says the lack of growth isn’t great for the industry, which is projected to be smaller next year in terms of players and dollars, so you need to grow the revenue side, or the cost side will become a much more significant challenge.

Microsoft Xbox Activision Blizzard Acquisition Merger
Activision Blizzard Laid Off Developers From Nearly Every Team

Phil Spencer remains hopeful that the console industry will grow again, and for that, they have been trying different strategies to expand the business, including a potential handheld console and an early next-generation launch.

The recent plan to go multiplatform is part of the same strategy as Phil Spencer thinks exclusivity may be behind the industry’s stalled growth. Therefore, Microsoft is releasing its games on multiple platforms, which will allow it to increase profits across all devices.

It remains to be seen how the console industry will grow in the future. Hopefully, more layoffs will not follow in the coming months. No major publisher has been safe from this trend, but we would like to believe that the worst is already behind us.

Was our article helpful? ๐Ÿ‘จโ€๐Ÿ’ป

Thank you! Please share your positive feedback. ๐Ÿ”‹

How could we improve this post? Please Help us. ๐Ÿ˜”

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

GeForce RTX 5090 Is Said To Feature 28GB of Memory

The GeForce RTX 5090 is now expected to feature 28GB of VRAM despite earlier reports hinting at more memory.

Helldivers 2 Peaked At 750,000 Concurrent Players On PC & PS5

The founder of Arrowhead Game Studios revealed that Helldivers 2 saw a peak of 750K players shortly after release.

Resident Evil Code Veronica Is Capcom’s Next Remake, Hints Insider

Capcom is reportedly working on Resident Evil Zero and Code Veronica remakes for the future of this series.

48% of PlayStation Call of Duty Players Still Active on PlayStation 4

Stats show that over 48% of the active PlayStation Call of Duty players still use a PlayStation 4, so more cross-gen releases are expected.

Red Dead Redemption Unlikely To Arrive On PC Anytime Soon

The Red Dead Redemption PC port may have been spotted too early, with an insider stating that it's unlikely to arrive anytime soon.