Microsoft has achieved a historic milestone by reaching a $3 trillion market valuation, becoming the second company ever to hit this figure. The tech giant's stock price surged to $404.87 per share, attesting to its strong market performance, fueled largely by its recent focus on AI technology and new product announcements. Despite this financial success, Microsoft announced the termination of 1900 employees from its gaming division, which includes workers from Activision Blizzard, a result of the company's major $69 billion acquisition of the gaming behemoth last year. The layoffs were explained by gaming head Phil Spencer as necessary for establishing a cost structure that supports Microsoft's expanding business. Mike Ybarra, the president of Blizzard Entertainment, also confirmed his departure from the company. This downsizing comes after the previous year's layoff of 10,000 employees. Microsoft's forthcoming full-year earnings for 2023 are highly anticipated following a reported 13% increase in revenue year-over-year in their most recent quarterly report.

What is Microsoft's latest market valuation and what implications has this had on its gaming division?

Microsoft has reached a $3 trillion market valuation. However, it has resulted in the layoff of 1900 employees from its gaming division including staff from newly acquired Activision Blizzard, reflecting the company's strategy to adopt a sustainable cost structure amidst its financial growth and expansion.

Microsoft's acquisition of Activision Blizzard is one of the most substantial deals in video game industry history, marking a significant expansion of Microsoft's gaming footprint. Activision Blizzard is known for blockbuster franchises like Call of Duty, World of Warcraft, and Overwatch. This deal not only has an impact on the workforce but also largely affects the gaming landscape, potentially influencing future game releases, exclusivity, and industry competition. The acquisition will likely bolster Microsoft's gaming services, such as Xbox Game Pass, and enhance their offerings through the integration of Activision Blizzard's extensive game library.