Microsoft has denied claims by US regulators that it went back on its word by cutting jobs after its purchase of Activision Blizzard – the biggest gaming deal in history.
Microsoft Gaming announced 1,900 job cuts in January, three months after the $69bn (£56bn) purchase was completed.
The Federal Trade Commission (FTC) says that "contradicts" Microsoft's previous representations.
But Microsoft said the idea of job cuts did not originate with its takeover.
"Consistent with broader trends in the gaming industry, Activision was already planning on eliminating a significant number of jobs while still operating as an independent company," the firm said in a filing with the US court, seen by the BBC.
"The recent announcement thus cannot be attributed fully to the merger."
The controversial deal gives Microsoft control of popular games such as Call of Duty, World of Warcraft and Candy Crush.
It was initially blocked in the UK but was later approvedwhen Microsoft made concessions.
The FTC, however, is still asking for the Court of Appeals to halt the deal so it can consider anti-trust implications.
If the regulator wins its case, it could still approve the merger but it might decide to split Activision Blizzard up into separate entities, or even block it entirely.
Because of this, it said the layoffs would make it harder for it to reverse the merger if it won its legal case which it said "underscored the need" for an injunction now.
The FTC said the reasons given for the layoffs were "inconsistent" with previous statements made by Microsoft.
According to the regulator, the tech giant said that it would run Activision Blizzard as an independent company. But the job cuts by Microsoft indicate that the gaming company is not being run independently, said the FTC.
But Microsoft said it "continues fully to stand behind" the statements it previously made to the court.
Phil Spencer, chief executive of Microsoft Gaming, had previously 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.
In response, Mr Spencer has announced a "business update event" in the coming week to discuss "the future of Xbox"..
The tech giant's AI success has caused shares to surge, after its market value passed $3tn.
Customers tell the BBC of "worrying" fees added to their monthly bills without their consent.
The announcement comes three months after the firm closed its huge merger with Activision-Blizzard.
Microsoft said AI and supercomputing were used to synthesise an entirely new material.
The new keyboard will introduce a Copilot key which accesses AI capabilities on Windows 11.
Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.
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Microsoft Equatorial Guinea
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Microsoft Estonia
Microsoft Eswatini
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Microsoft Federal Government of Germany *
Microsoft Fiji
Microsoft Finland
Microsoft has denied claims by US regulators that it went back on its word by cutting jobs after its purchase of Activision Blizzard – the biggest gaming deal in history.
Microsoft Gaming announced 1,900 job cuts in January, three months after the $69bn (£56bn) purchase was completed.
The Federal Trade Commission (FTC) says that "contradicts" Microsoft's previous representations.
But Microsoft said the idea of job cuts did not originate with its takeover.
"Consistent with broader trends in the gaming industry, Activision was already planning on eliminating a significant number of jobs while still operating as an independent company," the firm said in a filing with the US court, seen by the BBC.
"The recent announcement thus cannot be attributed fully to the merger."
The controversial deal gives Microsoft control of popular games such as Call of Duty, World of Warcraft and Candy Crush.
It was initially blocked in the UK but was later approvedwhen Microsoft made concessions.
The FTC, however, is still asking for the Court of Appeals to halt the deal so it can consider anti-trust implications.
If the regulator wins its case, it could still approve the merger but it might decide to split Activision Blizzard up into separate entities, or even block it entirely.
Because of this, it said the layoffs would make it harder for it to reverse the merger if it won its legal case which it said "underscored the need" for an injunction now.
The FTC said the reasons given for the layoffs were "inconsistent" with previous statements made by Microsoft.
According to the regulator, the tech giant said that it would run Activision Blizzard as an independent company. But the job cuts by Microsoft indicate that the gaming company is not being run independently, said the FTC.
But Microsoft said it "continues fully to stand behind" the statements it previously made to the court.
Phil Spencer, chief executive of Microsoft Gaming, had previously 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.
In response, Mr Spencer has announced a "business update event" in the coming week to discuss "the future of Xbox"..
The tech giant's AI success has caused shares to surge, after its market value passed $3tn.
Customers tell the BBC of "worrying" fees added to their monthly bills without their consent.
The announcement comes three months after the firm closed its huge merger with Activision-Blizzard.
Microsoft said AI and supercomputing were used to synthesise an entirely new material.
The new keyboard will introduce a Copilot key which accesses AI capabilities on Windows 11.
Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.
sourceMicrosoft indiaMicrosoft chinaMicrosoft usaMicrosoft
CanadaMicrosoft kuwaitMicrosoft Antigua and Barbuda
Microsoft ArgentinaMicrosoft Armenia
Microsoft
Australia
Microsoft Austria
Microsoft Austrian Empire*
Azerbaijan
Microsoft Baden*
Bahamas, The
Microsoft Bahrain
Microsoft Bangladesh
Microsoft Barbados
Microsoft Bavaria*
Microsoft Belarus
Microsoft Belgium
Microsoft Belize
Microsoft Benin (Dahomey)
Microsoft Bolivia
Microsoft Bosnia and Herzegovina
Microsoft Botswana
Microsoft Brazil
Microsoft Brunei
Microsoft Brunswick and Lüneburg*
Microsoft Bulgaria
Microsoft Burkina Faso
Microsoft Burma
Microsoft Burundi
Microsoft Cabo Verde
Microsoft Cambodia
Microsoft Cameroon
Microsoft Canada
Microsoft Cayman Islands, The
Microsoft Central African Republic
Microsoft Central American Federation*
Microsoft Chad
Microsoft Chile
Microsoft China
China
Microsoft Colombia
Microsoft Comoros
Microsoft Congo Free State, The*
Microsoft Costa Rica
Microsoft Cote d’Ivoire
Microsoft Croatia
Microsoft Cuba
Microsoft Cyprus
Microsoft Czechia
Microsoft Czechoslovakia*
Microsoft Democratic Republic of the Congo
Microsoft Denmark
Microsoft Djibouti
Microsoft Dominica
Microsoft Dominican Republic
Microsoft Duchy of Parma, The*
Microsoft East Germany German Democratic Republic*
Microsoft Ecuador
Microsoft Egypt
Microsoft El Salvador
Microsoft Equatorial Guinea
Microsoft Eritrea
Microsoft Estonia
Microsoft Eswatini
Microsoft Ethiopia
Microsoft Federal Government of Germany *
Microsoft Fiji
Microsoft Finland
Microsoft indiaMicrosoft chinaMicrosoft usaMicrosoft
CanadaMicrosoft kuwaitMicrosoft Antigua and Barbuda
Microsoft ArgentinaMicrosoft Armenia
Microsoft
Australia
Microsoft Austria
Microsoft Austrian Empire*
Azerbaijan
Microsoft Baden*
Bahamas, The
Microsoft Bahrain
Microsoft Bangladesh
Microsoft Barbados
Microsoft Bavaria*
Microsoft Belarus
Microsoft Belgium
Microsoft Belize
Microsoft Benin (Dahomey)
Microsoft Bolivia
Microsoft Bosnia and Herzegovina
Microsoft Botswana
Microsoft Brazil
Microsoft Brunei
Microsoft Brunswick and Lüneburg*
Microsoft Bulgaria
Microsoft Burkina Faso (Upper Volta)
Microsoft Burma
Microsoft Burundi
Microsoft Cabo Verde
Microsoft Cambodia
Microsoft Cameroon
Microsoft Canada
Microsoft Cayman Islands, The
Microsoft Central African Republic
Microsoft Central American Federation*
Microsoft Chad
Microsoft Chile
Microsoft China
China
Microsoft Colombia
Microsoft Comoros
Microsoft Congo Free State, The*
Microsoft Costa Rica
Microsoft Cote d’Ivoire
Microsoft Croatia
Microsoft Cuba
Microsoft Cyprus
Microsoft Czechia
Microsoft Czechoslovakia*
Microsoft Democratic Republic of the Congo
Microsoft Denmark
Microsoft Djibouti
Microsoft Dominica
Microsoft Dominican Republic
Microsoft Duchy of Parma, The*
Microsoft East Germany
Microsoft Ecuador
Microsoft Egypt
Microsoft El Salvador
Microsoft Equatorial Guinea
Microsoft Eritrea
Microsoft Estonia
Microsoft Eswatini
Microsoft Ethiopia
Microsoft Federal Government of Germany *
Microsoft Fiji
Microsoft Finland
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