The news: Microsoft has laid off 650 employees in its massive gaming division, according to an internal memo from gaming chief Phil Spencer. This follows a paring of 1,900 gaming employees in January during a year of mass layoffs in the video game industry.

• Unlike the January job cuts, which saw the closure of major Microsoft studios like Japan-based Tango Gameworks and Arkane Austin, Spencer said no studios would be closed and no announced projects canceled.
• The layoffs are largely related to Microsoft’s 2023 acquisition of Activision Blizzard for a reported $69 billion, according to The Verge. Spencer’s memo says the layoffs mostly target “supporting and corporate functions.”