Microsoft has responded to the Federal Trade Commission’s (FTC) claims that the company’s recent layoffs contradict previous statements made during its acquisition of Activision Blizzard. The FTC argued that Microsoft’s layoffs across its Xbox Game Studios were inconsistent with its claims during the merger. However, Microsoft has called these accusations “incomplete and misleading,” stating that the layoffs cannot be solely attributed to the merger.
In January, Microsoft announced significant layoffs within its gaming division, affecting around 1,900 jobs across Xbox Game Studios, including Activision Blizzard. The FTC recently presented its argument to the U.S. Court of Appeals for the Ninth Circuit, stating that the layoffs contradict Microsoft’s previous representations. The FTC also highlighted that Microsoft had suggested the two companies would operate independently post-merger, which is inconsistent with the layoffs being part of an execution plan to reduce overlap.
Microsoft has now responded to the FTC’s claims, asserting that the accusations are incomplete and misleading. The company argues that the layoffs cannot be solely attributed to the merger, as Activision Blizzard had already planned to eliminate a significant number of jobs while still operating independently. Microsoft points out that this recent announcement aligns with broader trends in the gaming industry.
The acquisition of Activision Blizzard by Microsoft was a complex process that involved extensive negotiations with competition regulators and the FTC. The deal was finalized late last year for a staggering $69 billion. The gaming industry as a whole has witnessed numerous mass layoffs in recent times, and it appears that Microsoft’s layoffs have also affected Crash Bandicoot developer Toys for Bob.
This is undoubtedly an uncertain period for Microsoft, as rumors circulate about Xbox exclusives potentially making their way to PlayStation and Nintendo. However, Microsoft is poised to share its vision for the future of Xbox in the coming week. Gamers and industry enthusiasts eagerly await further updates.
In conclusion, Microsoft has responded to the FTC’s claims regarding misleading layoffs following its merger with Activision Blizzard. The company argues that the layoffs cannot be solely attributed to the merger and that Activision Blizzard had already planned job cuts. As Microsoft prepares to unveil its future plans for Xbox, the gaming industry eagerly anticipates further developments.