Microsoft (NASDAQ: MSFT) Ends Android and Television Production Business - Market News | Financial Buzz

Microsoft (NASDAQ: MSFT) Ends Android and Television Production Business

Nokia Lumia, Microsoft, LayoffAndroid Business

Following the announcement by Microsoft (NASDAQ: MSFT) that the company will be slashing 18,000 jobs, the biggest job layoff in Microsoft history, the company will also be ending their Android division, which was just unveiled recently back in February with their Nokia (NYSE: NKE) X smartphone.

The Nokia X smartphones will now be transitioned over to the Lumia line and will be outfitted with Microsoft’s Windows Phone operating system. Current Microsoft Android phone users have nothing to worry about because existing Android phones will still be supported.

In addition, Microsoft also expressed that they intend on increasing the Windows Phone market share by attacking the affordable phone divisions. Microsoft also plans on releasing other lower-cost Lumia devices by transitioning certain Nokia devices to Windows Phone devices.

TV Segment Production Business

Alongside their Android division, Microsoft also announced the closing of their Xbox Entertainment Studio, which was initially Microsoft’s plan to compete with Netflix (NASDAQ: NFLX) and Amazon (NASDAQ: AMZN). The studio was started in 2012 and was originally supposed to be utilized to produce TV shows, but it is now expected to be closed by the end of the year.

Despite the depressing news of the business closure, the studio will remain operational for the time being. Currently, 11 shows are in development with five shows that have been cleared for production. The Bulk of these shows are framed around popular video game franchises such as Gears of War, Age of Empire and Forza Motorsports.

According to recent statistics, Microsoft employs approximately 127,000 employees around the world; most of the 18,000 layoffs will be from the Nokia division.