The gaming industry is facing numerous difficulties! Microsoft Corporation's Xbox division plans to lay off 650 employees.

Microsoft Corporation (MSFT.US) announced that it will lay off 650 people from its Xbox department, marking the third round of layoffs this year as the company tries to control costs and integrate its $6.9 billion acquisition of Activision Blizzard. According to a memo sent to employees by Xbox CEO Phil Spencer on Thursday, the positions being cut are "primarily in corporate and support functions. In today's adjustment, there are no gaming, devices, or experience positions eliminated, nor are any studios being closed." It is understood that in January of this year, Microsoft Corporation laid off 1,900 people, many of whom came from the Activision Blizzard division and studios, leaving Xbox employees prepared for further layoffs. In May, the company announced the closure of four studios acquired in the $7.5 billion ZeniMax deal, with one being eventually sold off. These actions, along with the decision to release some Xbox games on competitors' gaming consoles, have angered some fans of the platform, questioning Microsoft Corporation's commitment to creating compelling exclusive content. For the broader gaming industry, this year has been tough as development costs continue to rise and growth stalls. Major multinational companies like Sony (SONY.US), Take-Two Interactive Software (TTWO.US), and Electronic Arts Inc. (EA.US) have also been laying off employees and canceling large projects. Sony recently scrapped its big-budget multiplayer shooter "Concord" just two weeks after release, showing impatience with the slow-starting game. Microsoft Corporation completed its acquisition of Activision Blizzard in October last year, after a 21-month period since the acquisition was announced and after a fierce battle to obtain antitrust approval. This acquisition has brought new content and talent to Xbox, but the long-term return on this deal remains a challenge.