The rumored Microsoft job cut is real, as the company reports that around 18,000 of its employees are on the verge of losing their jobs in 2015.
The majority will come from the mobile division, which has incorporated an extra 30,000 employees due to the Nokia merger. However, not only is Microsoft cutting jobs, it is also closing down the Xbox entertainment studios.
According to a report via ReCode, the Xbox Entertainment Studios is not something new that CEO, Satya Nadella, views as worthwhile. In fact, it appears that he sees this initiative as distracting and far from the company's core values. The studios won't be slapped with a shutdown right away, but after current projects have been finished.
For those who are not aware of what Xbox Entertainment Studios is, let's attempt to break it down. Under the rule of former Microsoft CEO, Steve Ballmer, the Xbox Entertainment Studios was born. The company designed it to help improve Microsoft's entertainment ambition with the Xbox brand. The plan was to create several TV shows and other programs under the studio, which includes Halo and other properties.
To prove how serious Microsoft was about its entertainment ambitions, the company hired CBS chief Nancy Tellem to take full control of Xbox Entertainment Studios. However, she failed to get shows off the ground, which could be one of the reasons why Satya Nadella has lost faith in the venture.
She won't be leaving right away, as she is needed for overseeing the projects currently in development. Once done, Tellem and around 200 employees from the entertainment team will be booted from Microsoft.
This move was a clear shot at competing directly with the likes of Netflix and Amazon, but it appears Satya Nadella wants none of it.
What does this mean for original programming on Xbox?
Clearly, Microsoft won't have a hands-on approach, but that doesn't mean Microsoft wouldn't allow other studios outside the company to take up the mantle. The Halo franchise is one of the most well-known and popular video games to date, so it would make perfect sense for Microsoft to use its popularity in other areas.
When it comes down to the Xbox hardware, it shows that Satya Nadella is not completely convinced of its importance to the company. Phil Spencer and other members of the Xbox team may now have to work extra hard to give Nadella a reason to keep the Xbox hardware business around before the end of the current console gaming generation.
