Microsoft’s Video Game Units Fragged in Layoffs

While the video game industry has been far outperforming many others in the economic downturn, Microsoft has included many in its own video game units in it current sweeping layoffs.

According to Gamasutra and VentureBeat, as part of its move to cut 5,000 jobs over the next 18 months, Microsoft has axed hundreds of positions from its game divisions.

Microsoft is shutting down ACES, one of its wholly owned studios, which produced the company’s longest-running game franchise, Flight Simulator. Microsoft said the game will live on in one form or another.

“Major” Nelson Rodriguez, the popular and widely-respected Xbox blogger, has been sacked, amongst others in gaming community management.

Microsoft’s Lionhead and Rare studios, the latter of which just published Fable II, as well as its Forza Motorsports studio were untouched.