Microsoft cuts could be felt in Xbox division

Microsoft's initial cuts could be coming from the Xbox division.

After Microsoft announced 5,000 job cuts, including 1,400 immediately, we were under the impression that the Xbox division was the safest, due to the Xbox 360's sales being so strong.

However, according to sources speaking with ZDnet's Microsoft blogger, Mary-Jo Foley, this might not be the case:

"I'm hearing from my sources that the Entertainment and Devices (E&D) unit - the group that is responsible for Xbox, Zune and Windows Mobile - is being hit with the bulk of the immediate 1,400-person cuts. (I have no specifics about how this will affect Microsoft's product roadmap, but stay tuned.)"

When contacting Microsoft for comment, Kotaku received the following statement:

"This is a company-wide action, in which every division will be affected. We cannot share any other details at this time".

Losses have already been felt at the Microsoft Gamerscore blog, but we've yet to hear of any other Xbox related losses.

On a related note, Microsoft's 5,000 job-cuts could increase due to the fact that this number does not include outside vendors employed by the company.