Microsoft accused of u-turn on Activision job cuts

US regulators have told a court that Microsoft went back on its word that its takeover of Activision Blizzard, the biggest gaming deal in history, would not result in job losses. Microsoft Gaming announced 1,900 job cuts in January, three months after the $69bn purchase was completed. The controversial deal gives Microsoft control of popular games such as Call of Duty, World of Warcraft and Candy Crush. The job cuts by Microsoft indicate that the gaming company is not being run independently, said the FTC. Phil Spencer, chief executive of Microsoft Gaming, said in a memo that the layoffs were a way to reduce "Areas of overlap" in its business. Separately, there are reports Microsoft is planning a wider shake-up of its gaming operations, including suggestions Xbox exclusives might end up on rival platforms.

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