Xbox layoffs are partly blamed on the Activision Blizzard acquisition

Former Microsoft employees suggested the company buy it Activision Blizzard is partly to blame for persisting Xbox layoffs. While some employees speak on the condition of anonymity, former Microsoft gaming PR director Brad Hilderbrand has openly expressed his concerns about Game Pass and the ramifications of Activision Blizzard’s purchase.

How Activision Blizzard’s purchase could have resulted in Xbox layoffs

Echoing what many have said about Game Pass, Hilderbrand said that every game launched on the service is “severely falling short” of its sales goals. In a lengthy note on LinkedIn, he stated that subscription revenue is not enough to offset game development costs, and with subscription spending on hold, it’s a recipe for disaster.

To add to its woes, Xbox pushed to buy Activision Blizzard for a staggering $68.7 billion. Previously, the Xbox division was not on Microsoft’s radar and remained largely under the radar. But Hilderbrand says that after spending nearly $70 billion, the “eye of Sauron has turned” and that Microsoft executives are now more committed to Xbox than ever before and expect the division to cut costs and recoup some of that money. Unfortunately, this resulted in smaller teams being very successful.

Another longtime former Microsoft employee spoke to IGN and echoed Hilderbrand’s words. “We are actually dealing with three huge companies, and Microsoft has never actually completed the integration with Bethesda,” they said. “Activision is like three times bigger than Xbox.”

Reports indicate that more Xbox layoffs are expected soon.