6000+ Microsoft Employees Laid off Right After Massive Xbox Price Increases

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Employees Laid off Right After Massive Xbox Price Increases

Doom isn’t the only world where “the dark ages” (hah!) have begun, as the video game industry is hit with more layoffs.

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, yet again, is at the scene of the crime as it lays off more employees amid price increases for all Xbox products, including their video games.

This isn’t surprising to anyone but the employees themselves, as laying off people and shutting down studios have seemingly become a part of

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’s yearly routine. However, the number this time is in the thousands again, and in an economy where people can’t afford to lose jobs, they’re doing just the opposite.

Around 3% of

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’s workforce, which equates to more than 6,000 employees, have been laid off

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is hit with more layoffs as price hikes make matters worse | Image Credit:

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Yesterday,

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announced that around 3% of its workforce, equivalent to more than 6,000 employees, have been laid off, which is a humongous number, showing that the company isn’t slowing down with its layoffs anytime soon. In a statement to

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,

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’s spokesperson stated that the change was necessary to ensure the company’s success, which sounds like classic PR talk.

We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.

Ironically, their idea of organizational changes is always laying off the people who are instrumental to the company’s success, and not reducing the salaries of higher-ups to ensure sustainability in today’s market. This layoff makes more sense when you take into account the ridiculous price hikes of Xbox consoles and accessories, including their games, following shamelessly in the steps of Nintendo.

It’s also hilariously evident that not only is the price hike an effort to snag premium sales from other platforms, but it’s also their strategy for their players to continue subscribing to Game Pass, since it’s a way cheaper alternative to playing first-party titles on day one without having to shell out the full amount.

Can Game Pass shape a sustainable future for Xbox?

With these persistent layoffs and price hikes, it’s hard not to think that Game Pass might be one of the contributing factors. Think about it, you can play $70 AAA titles like Doom: The Dark Ages and Indiana Jones and the Great Circle on day one with the help of Game Pass, which costs much less than buying the game. This begs the question: How is Xbox getting the revenue from premium sales when everything is on Game Pass?

This is where their multiplatform strategy comes in, since they need to earn back the money spent on developing and marketing a game, which is hardly possible when games are dropping day one on Game Pass. When the revenue generated is lower than the cost incurred, it’s bound to lead to eventual layoffs and studio shutdowns.

Just last year in January, 1,900 Xbox and Activision Blizzard employees were laid off, and in September,

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announced 650 job cuts in its gaming division to make things worse. Game Pass has been profitable for Xbox, offering exposure to indie titles that fly under the radar and promoting blockbuster AAA games. Only time will tell whether these profits are enough to prevent the company from getting rid of more employees.

One can only hope that

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and Xbox can avoid future layoffs to earn sustainable profits in the long run, but it might be too late. So, what do you think about the

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layoffs? Do you think that the reason they gave is justified and applicable? Or is it another excuse from them to save face? Share your thoughts and opinions in the comment section below.

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#Employees #Laid #Massive #Xbox #Price #Increases

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