The gaming industry is in trouble! Microsoft's (MSFT.US) Xbox division plans to lay off 650 people.

Microsoft (MSFT.US) said it would cut 650 jobs in its Xbox division, its third round of layoffs this year as the company seeks to control costs and integrate its $69bn acquisition of Activision Blizzard.According to a memo sent to employees by Phil Spencer, Xbox chief executive, the jobs to be cut “are mostly enterprise and support roles. No game, device or experience roles are being eliminated, and no studios are being closed” in the latest round of cuts.Xbox employees have been preparing for further layoffs since January, when Microsoft cut 1,900 jobs, many from Activision Blizzard’s divisions and studios. In May, the company announced it was closing four studios it bought for $7.5bn as part of the acquisition, one of which was eventually sold. Those moves, along with the decision to release some Xbox games on rival gaming consoles, have angered some fans of the platform and called into question Microsoft’s commitment to creating compelling exclusive content.This year has been brutal for the wider gaming industry as the cost of developing games has risen and growth has stalled. Large multinational companies such as Sony (SONY.US), Take-Two Interactive (TTWO.US) and Electronic Arts (EA.US) have all cut jobs and closed large projects. Sony this month axed the slow-starting multiplayer shooter Concord just two weeks after its release, showing a lack of patience for the game.Microsoft completed its acquisition of Activision Blizzard in October last year, 21 months after the deal was announced and after a fierce battle to win antitrust clearance. The acquisition has brought new content and talent to Xbox, but the long-term returns of the deal are also a challenge.