The most senior member of staff known to be sent home is Chris Early, general Manager of Games For Windows Live. His departure has thrown into doubt how much the troubled enterprise will support the service, and how many job cuts will be made in that division.
Microsoft announced last week that it will make deep cuts to its global workforce; initially draining 1,400 positions, with around 5,000 workers being sent home throughout the next 18 nervy months. Much speculation centres on the extent in which Microsoft’s Entertainment and Devices Division will be hit.
Games For Windows Live launched in May 2007, with Microsoft steadily updating the service thereafter. Games For Windows Live was given a new interface in November that Microsoft said would “provide a unique online home for PC gamers.” It is unclear if the company will pursue its ambitions to develop a Steam-like game download system for the service.
Microsoft CEO Steve Ballmer stated that the corporate downsizing will reduce Microsoft's annual operating expense run rate by about $1.5 billion, and reduce fiscal year 2009 capital expenditures by $700 million.
The 5,000 cuts do not include external contractors, which Microsoft are said to be reducing as heavily, if not more so, as the permanent staff.
Reports emerged on Friday that Office Live and Windows Live were to merge as one, though Micorisoft had stated that no senior management would be affected by the merger.
Microsoft confirmed to Edge on Friday the closure of its internal Aces Studio, which is responsible for the Flight Simulator series.