After a lot of wrangling with regulators, Microsoft recently spent $69 billion-with-a-b to acquire Activision Blizzard, after which it almost immediately cut 1,900 jobs across its gaming business. Not great news for anyone, unless perhaps you own MSFT stock. In an interview with Polygon about the driving forces behind layoffs at Microsoft and across the industry, Xbox boss Phil Spencer pointed the finger at—well, really, just capitalism in general.

The problem, according to Spencer, is a “lack of growth” across the videogame industry as a whole. “When you have an industry that is projected to be smaller next year in terms of players and dollars, and you get a lot of publicly traded companies that are in the industry that have to show their investors growth—because why else does somebody own a share of someone’s stock if it’s not going to grow?—the side of the business that then gets scrutinized is the cost side,” Spencer said. “Because if you’re not going to grow the revenue side, then the cost side becomes challenged.”



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