FTC Criticizes Microsoft over Layoffs at Game Studios
The US Federal Trade Commission (FTC) has criticized Microsoft over its recent layoffs at its game studios, particularly at Activision Blizzard. According to the FTC, these layoffs contradict Microsoft’s previous statements about the independent operation of Activision Blizzard following its acquisition.
In a letter filed with the court, the FTC questions Microsoft’s earlier claims that the layoffs were aimed at reducing overlap between the two companies. The commission argues that this contradicts Microsoft’s assurance that Activision Blizzard would maintain its independent operation.
This critique from the FTC could have implications for any future legal challenges to Microsoft’s acquisition of Activision Blizzard. The commission argues that if the court were to find the acquisition illegal, it would be difficult for the FTC to provide monetary aid to the laid-off developers.
Despite the criticism, the layoffs at Activision Blizzard continue, with more studios affected. Most recently, Toys For Bob, known for their work on Crash Bandicoot and Spyro, experienced layoffs. Although the studio is not closing entirely, it will now operate remotely after its California-based studio was closed.
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Analyst comment
Negative news: The criticism from the FTC over Microsoft’s layoffs at game studios, including Activision Blizzard, raises concerns about the inconsistency of Microsoft’s previous statements. This critique may impact future legal challenges to the acquisition and hinder the FTC’s ability to provide monetary aid to the laid-off developers. The layoffs at Activision Blizzard continue, with more studios affected, potentially leading to a decrease in morale and productivity in the gaming market.
