According to an email revealed by ZDNet today, Microsoft has decided to close Xbox Entertainment Studios giving up idea of creating its own TV content, which is not a bad decision. In fact, Microsoft should not have entered into this business as it does not really fit to its profile, expertise and technological vision. Microsoft found Xbox Entertainment Studios in 2012, to create interactive TV content for Xbox Live. The two main projects Xbox Entertainment Studios has been working on include; a science fiction drama, Humans, and action TV series, Halo. Among other big technological giants, Amazon does also create its own TV content, but Google and Apple have stayed out of this business. We understand, minus Xbox Entertainment Studios, now Microsoft could narrowly focus on gaming in its Xbox live business.
Also, Microsoft will be laying off 18,000 its employees over next one year - the biggest job cut ever in Microsoft's history. Microsoft has almost 125,000 employees worldwide. In 2009, it has to cut around 6,000 jobs because of recession. However, 75% of expected layoffs in 2014-15 would be from Device and Services business Microsoft acquired from Nokia in September 2013. These layoffs will cost $1.5 billion to Microsoft in terms of severance and benefit packages.
Furthermore, Microsoft will not be making Nokia Andriod phones anymore. All future Nokia devices now will be Lumia, and run on Windows Phone, Microsoft's mobile operating system. This should make perfect sense to everyone - after all Microsoft did not spend $7.2 billion to run Android on acquired Nokia business but its own mobile platform, Windows Phone.