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Microsoft Lays Off Around 650 Employees from Xbox Gaming Unit

• Written by Andrea Miliani Former Tech News Expert
• Fact-Checked by Justyn Newman Former Lead Cybersecurity Editor

Microsoft announced this Thursday that it will cut off around 650 roles from its Xbox gaming division. According to CNBC , the CEO of Microsoft Gaming, Phil Spencer, sent a memo to employees informing them about the decision this week.

“We are deeply grateful for the contributions of our colleagues who are learning they are impacted,” said Spencer in the document CNBC verified.

According to the information shared by the CEO, most of the roles being cut out are from supporting and corporate positions. It was also clarified that no devices, games, studios, or gaming experiences would be affected by this change. In previous layoffs, studios have been affected, but not this time.

This would be the third round of layoffs since the acquisition of Activision Blizzard for $69 billion in October last year. This new cut was focused on reducing redundancies, aligning the new merged team, and focusing on long-term goals.

“In the US, we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location,” said Spencer.

According to the BBC, this new layoff represents 3% of the gaming staff. Spencer mentioned that he knew it would be “difficult” for many workers and acknowledged and thanked their contribution to Xbox.

After the pandemic, the gaming industry has faced multiple layoffs including companies like Sony’s Playstation. However, while Xbox device sales have fallen, according to recent reports, Microsoft has mentioned that gaming revenues have increased, especially after the purchase of Activision-Blizzard—which produces popular games like Overwatch, World of Warcraft, and Diablo.

A few months ago, Microsoft also announced higher prices for its Xbox Game Pass subscription services.

Other tech companies also announced layoffs this week. Bending Spoons announced on Monday that it will cut 75% of WeTransfer’s staff .

Image by Ishmael Daro, from Flickr

OpenAI Releases New “Reasoning” AI Model, o1

• Written by Kiara Fabbri Former Tech News Writer
• Fact-Checked by Justyn Newman Former Lead Cybersecurity Editor

OpenAI announced today its latest AI model, o1, the first in a new family of “ reasoning ” models designed to handle complex problems faster and more accurately than previous models.

Alongside o1, the company is also releasing a smaller and more affordable version called o1-mini. This release is being described as a “preview,” signaling that the technology is still in its early stages.

o1, which was previously known by the code name “Strawberry,” is the first in a series of “reasoning” models that OpenAI plans to release, as noted by TechCrunch .

Jerry Tworek, OpenAI’s research lead, told The Verge that the training behind o1 differs significantly from previous models, though the company has been unclear about the specifics.

Unlike its predecessors, which were designed to mimic patterns from training data, o1 uses reinforcement learning, a method that teaches the system to solve problems through rewards and penalties.

One of the most striking features of o1 is its ability to solve multi-step problems and write code with a higher degree of accuracy compared to earlier models.

For instance, in a qualifying exam for the International Mathematics Olympiad, o1 outperformed OpenAI’s previous GPT-4o model, solving 83% of the problems compared to GPT-4o’s 13%.

This leap in performance is attributed to o1’s new training process, which incorporates what OpenAI refers to as a “chain of thought” mechanism, allowing the model to break down and solve problems step-by-step.

Tworek notes that while the model has reduced its tendency to “hallucinate,” or provide inaccurate information, the issue has not been entirely resolved, as reported by The Verge.

In addition to its mathematical prowess, o1 ranked in the 89th percentile in competitive programming contests, demonstrating its potential as a tool for developers and researchers alike.

According to The Verge, what stood out how intentionally o1 seemed to mimic human-like thought. Phrases like “I’m curious,” “I’m thinking,” and “Let me see” gave the illusion of a thought process, though the model isn’t actually thinking. So why make it seem like it is?

The Verge reports that Tworek explains this interface is meant to demonstrate how the model takes more time to process and explore problems in greater depth.

Despite these advancements, OpenAI acknowledges that o1 still has limitations. While it excels in complex problem-solving, it is less adept at handling factual knowledge about the world. Additionally, it lacks some of the features that make GPT-4o highly versatile, such as the ability to browse the web or process files and images.

Moreover, o1’s new capabilities come at a cost. The model is significantly more expensive to use than GPT-4o. On OpenAI’s API, o1-preview costs $15 per 1 million input tokens and $60 per 1 million output tokens, which is three to four times higher than the cost of GPT-4o.

While the technology is still in its early stages, the release of o1 highlights ongoing advancements in AI’s ability to tackle complex tasks, offering potential benefits across various fields that require advanced problem-solving capabilities.