LOS ANGELES — In January, Microsoft laid off 1,900 employees, like video game designer Meha Murthy, from their gaming division.
The layoffs came several months after the company acquired Activision Blizzard, a move that helped Microsoft’s gaming division report record revenue last quarter. The Federal Trade Commission repeatedly tried, but failed, to block Microsoft’s acquisition, citing antitrust concerns.
Following the company’s layoffs, the FTC accused Microsoft of contradicting statements they made during acquisition proceedings.
According to Dmitri Williams, a USC professor who teaches courses about the video game industry, acquisitions like Microsoft’s almost always result in layoffs. He also said mergers decrease competition and product quality.
Nevertheless, Williams remains hopeful about the future of the industry and expects many jobs will come back, eventually.
As for Murthy, she said even when those positions do return, video game workers should unionize to ensure better working conditions, compensation and protections.