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Microsoft has delivered another blow to the gaming industry with the news that it is cutting 650 more positions from its games arm of the business, continuing the "streamlining" trend in the sector.

At the start of the year, the computer giant announced it was trimming 1,900 people, or 8%, of its gaming staff as it completed its megabucks deal to buy out "Call of Duty" creators Activision Blizzard.

The most recent elimination of mostly corporate and support roles is said to provide "long-term success" for Microsoft following the $69 billion acquisition, according to a memo from unit chief Phil Spencer seen by AFP.

"Today is one of the challenging days," Spencer said. "I know that going through more changes like this is hard."

It is yet more bad news for the sector following Sony Interactive Entertainment subsidiary Bungie's 220 cuts in July.

Spencer told employees at the time of the buyout that Microsoft and Activision were looking for a "sustainable cost structure" to expand its gaming business, which includes the Xbox division.

"Together, we've set priorities, identified areas of overlap, and ensured that we're all aligned on the best opportunities for growth," he added.

Microsoft, now the world's third-largest gaming company by revenue, said none of its studios are being closed as part of the "adjustments" made on Thursday, according to Spencer.

Around 260,000 jobs have been cut in the tech sector in the past year, according to California-based website layoffs.fyi, that tracks job losses in the industry.