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Microsoft Cuts Xbox One R&D Department in China

After launching the Xbox One in the Far East over the summer it’s now reported that Microsoft will be cutting its research and development staff for the next gen console in China.

Microsoft announced major layoffs in the past fortnight across its global business and perhaps the late start and lackluster response for the Xbox One was a precursor to where the next job cuts would hit. Its believed now that the R&D for the console will be more focal in the United States where Microsoft makes it home in Washington.

Also See: Thinner Chips Could Lead to Slim Xbox One

Xbox One launched in China just over a month ago.

According to the report from Shenzen Business News published from China a number of divisions 80 members of staff only found out about their redudancy when they tried checking into work to find their clock in cards were dysfunctional, without any prior consultation by their employer. The report adds that agency staff even had their card confiscated. Severance packages have since been discussed between Microsoft and its now former staff however none have yet agreed to the apparently poor terms.

Also See: Xbox One Launched in China

Despite reporting a much better sales launch in China than neighbouring Japan with its Xbox One the overall global figures suggest that Sony still leads the console war by a margin of around 40% and it’s the native Sony PlayStation brand that the massive Asia market still supports most strongly.

It’s also suggested that due to the late start for Xbox One in these eastern regions, and the recent change in the law regarding games console sales in China, that those who did want one bought from overseas months ago, so when the Xbox One was released locally there was low demand with stores still having ample stock.

Regardless of reasons for closing R&D in China, it’s very sad to see it go this way and for all the Microsoft staff who were left in totally in the dark about it.