Group 1 - Microsoft announced a global workforce reduction affecting approximately 9,000 employees, which is less than 4% of its total workforce, impacting multiple teams, regions, and levels of staff [1] - The gaming division is undergoing significant changes, with hundreds of employees laid off from various studios, including those behind popular franchises like Call of Duty and Halo [1] - Microsoft has canceled several long-developed game projects, including Everwild and an original online game from ZeniMax Online Studios, as well as the reboot of Perfect Dark [1] Group 2 - Phil Spencer, CEO of Microsoft's gaming division, stated that the company is making strategic choices to focus on growth areas and improve agility and efficiency by reducing management layers [2] - Spencer mentioned that affected employees will receive priority consideration for other open positions within the company, emphasizing the strength of Microsoft's platform, hardware, and game development roadmap [2] - Microsoft has conducted multiple rounds of layoffs this year, totaling approximately 18,000 employees, including a previous reduction of over 6,000 in May and around 2,300 in June [2] Group 3 - The layoffs in the gaming division were anticipated due to pressure to improve profit margins following Microsoft's $69 billion acquisition of Activision Blizzard in October 2023 [3] - This marks the fourth major round of layoffs in the Xbox division over the past 18 months, with a focus on the marketing department [3] - As of July 2, Microsoft's stock price slightly decreased by 0.2% to $491.09 per share, with a total market capitalization of $3.65 trillion [3]

Core Viewpoint - The Federal Trade Commission (FTC) has officially withdrawn its antitrust lawsuit against Microsoft's $69 billion acquisition of Activision Blizzard, marking a significant victory for both American gamers and political rationality [1][2]. Group 1: Acquisition Details - The acquisition, which began in January 2022, has positioned Microsoft's gaming business as the third largest globally, integrating over 30 top IPs from Activision Blizzard [2]. - Following the acquisition, the Xbox Game Pass library has expanded to over 5,000 games, with subscription users increasing by 60% to 40 million, generating annual subscription revenue exceeding $6 billion [2]. Group 2: Regulatory Challenges - The FTC initially opposed the acquisition due to concerns over monopoly risks, particularly fearing a decline of 3 million units in annual sales for Sony's PS console if the Call of Duty series was removed from the platform [2]. - Microsoft has committed to keeping the Call of Duty series available on the PS platform for ten years and has agreed to open cloud gaming licenses to third parties, which ultimately persuaded the court to allow the acquisition [2]. Group 3: Global Regulatory Agreements - Major global regulatory bodies have reached settlement conditions, with the EU requiring open cloud gaming transmission channels and the UK establishing an independent regulatory committee, leading Microsoft to divest some cloud gaming rights [2]. Group 4: Integration Challenges - Despite the legal hurdles being cleared, the integration of Activision Blizzard presents ongoing challenges, including declining revenue and cultural conflicts within the studios leading to talent loss [2][3]. - The FTC retains the right to initiate an administrative trial in July, theoretically allowing for the potential breakup of the merged entity, indicating that the true test of integration is just beginning [3].