August 20, 2004 - Microsoft has effectively closed its sports game studio, resulting in the layoff of 76 employees from the Redmond, Washington office, according to The Seattle Times.

Microsoft announced in March that it would postpone its central line of sports titles, such as NFL Fever and NHL Rivals. At the time it seemed a bow to the SEGA-developed ESPN titles and Electronic Arts' massive sports franchises. Since then, Microsoft has partnered with Electronic Arts, which has resulted in much-desired Xbox Live support in EA Sports titles.


The company's first-party development team was once focused on PC games, and numbered around 350 employees. At its peak after the Xbox launch, the team grew to 1,200. By May, the group was closer to 1,000 employees.

Microsoft comments that third-party support for the Xbox has grown significantly in general, creating strong and varied support for the console.

The Times article notes that the Utah studio in charge of the Amped and Links franchises is not affected by the layoffs.

Microsoft could not be reached for comment at the time of this writing. We'll bring you more details as they emerge.