Xbox Entertainment Division also shuttered.
By Tim Colwill on July 18, 2014 at 2:45 pm
Microsoft has today announced that it will slash 18,000 jobs, the biggest single round of layoffs in the company’s history, as it repositions itself in the market.
The company’s Nokia division, which Microsoft acquired in September 2013, is the hardest hit. 12,500 staff at Nokia will be affected by this decision, which Microsoft’s CEO described as “our work toward synergies and strategic alignment”.
In a company memo obtained by The Verge, Microsoft’s Phil Spencer confirmed that the Xbox Entertainment division would be closed.
The closure is seen as a recognition that Microsoft’s move away from turning the Xbox into an “entertainment centre” was the right call: Microsoft’s Xbox One console sales have doubled since a Kinect-free edition was put on the market.
Projects currently being produced by the Xbox Entertainment Division, including the Steven Spielberg-directed Halo series, will continue, but all future projects have been canned. Xbox Entertainment recently debuted their “Xbox Originals” program designed to compete directly with offerings such as Netflix, but this is no longer the case.