With the just-announced price drop of the Xbox One, the removal of the Kinect, and the recent hiring of the games-focused Phil Spencer as new head of the Xbox division, Microsoft is backing off extremely hard from their initial branding as an always-on living room service and joining the Playstation 4’s price as more of a classic console. This might be good news for the future of consoles, but it’s also indicative of how perilous the console market is right now.
The previously rumored mass layoffs at Xbox are expected to happen on Wednesday, July 2, 2025, according to a new rumor.
They will have fired close to 20,000 people all up after this round of lay-offs coming, since the ABK deal announcement in January 2022. Shocking really
January 2023:
Microsoft laid off 10,000 employees, which was a significant workforce reduction.
January 2024:
Approximately 1,900 gaming employees were laid off following the Activision Blizzard acquisition.
May 2025:
Microsoft announced a further 6,000 layoffs as part of an organizational shift.
June 2025:
Additional layoffs, including 650 in the gaming business, focused on corporate and support functions
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"They will have fired close to 20,000 people all up after this round of lay-offs coming, since the ABK deal announcement in January 2022. Shocking really"
It's not that shocking considering these numbers aren't just Xbox numbers as you're deliberately trying to make it seem for some reason.
Interestingly, another no shocking fact is that whenever Microsoft releases its quarterly earnings reports, you're quick to point out that those numbers aren't exclusive to Xbox. Yeah... go figure.
They also fired around 2500 people across Microsoft's gaming divisions and Zenimax shortly after buying it, and before they closed down 4 studios including Arkane and Tango.
I remember Satya boasting about how compassionate he was for splitting the list 50/50 across the two companies.
Let's hope its not as bad as socials are making it, good luck to those that unfortunately lose their jobs.
Could be not as bad could be horrible. But it's Ms so I'm expecting the absolute worst.
Sometimes I feel like they brought in Sarah to take the heat away from Phil.
Phil has always stuck his nose into everything Xbox related when it's something positive or at least neutral but as soon as they went the multiplatform root he's stood back and let Sarah do most of the talking in terms of PR. Now they are doing the same with layoffs.
The person who should be let go is Phil himself.
One of the founding members of the Xbox team has questioned Microsoft’s multiplatform gaming strategy, and said they believe the Xbox hardware business is effectively “dead"
Replies(3)Think that rumor that they'll still make a new console but at a profit at $1000 will be true though. The series consoles will remain their cheap alternative throughout next gen I would say. Keep in mind that game pass and pretty much going 3rd party is their main focus. They want to bring xbox everywhere.
If they don't maintain some kind of console presence, I think they will lose gamepass subscribers and just become a 3rd party publisher who eventually sells everything off
Xbox games are releasing on all platforms. Who needs this hardware? PS or PC is all you need
Even if they could get it down to $800 for a box that can run with comparable performance to a PS6 (at, say $200 cheaper) the population of people willing to buy such a thing would be so limited.
It would be the worst of both worlds.
Even as the company sets out to overhaul the very definition of Xbox, cuts at its studios risk creating a negative image reminiscent of EA's worst era
I appreciate the article but this guy must be living in a delayed universe, The reputation was ruined 10+ years ago and hasn't recovered since. As such people have voted with their wallets and stopped buying Xbox products in large amounts.
Their reputation was lost way before that. From the moment Microsoft said they entering the console business, we all knew it would be a downgrade.
That's not true at all the OG Xbox had drive and they had hunger and they wanted to accomplish something. It was a great console.
they didn't quite reach their goals and they gave up prematurely because they couldn't win. It was halfway through the Xbox 360 when kinect released and that was when they lost their way and we're a rudderless ship ever since
In all fairness, Xbox had some great games with online play, Xbox 360 even better. Xbox consoles started to die with the Xbox One. Ditch consoles for the PC and PS.
@Bathyj hard to compute ay. Xbox was never better than a PC and that's all they ever were. A demo box. Doesn't get more true than that.
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Rumors of Turn 10 being either shut down or hit with massive lay offs is on the horizon.
The issue is MS will do something right only to do something very, very wrong. And they do this what seems calculative at this point. Doesn't matter what they do the Investors and leadership want more and more money an endless bottomless pit of purr insatiable greed. A company that acts like it's broke or hurting is what really, really infuriates me. They've surpassed apple again well over 3 trillion who acts like they're a million dollar company is fk stupid. Pivots and changes for no reason and can't do things for more than a year with out a pivot or changing their metrics.
That would be really bad since Phil just hyped up next year as a big Forza year at Summer Game Fest.
Isn't the point that it's irrelevant how profitable MS is, the suits have decided it's time that the Xbox division started making them money. Hence the layoffs, the pivots.
That wouldn't surprise me, as motorsport has been heading down hill since the great number 4. Where as playground have consistently put out better games. I think the two studios will be merged under playground games banner.
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Not if we don't buy in.
Its coming but its up to us as consumers as to how much we are willing to be hosed
Microtransactions can be a good thing, it's just a real shame that companies feel the need to ruin it and be greedy. If developers/publishers want to extend a game's life by adding in new content down the line, I don't see how that is a bad thing for fans of the game.
It's things like digital currency that bother me though. Letting people take shortcuts which can have a drastic effect to online modes by letting them buy the best stuff with real cash. Worse still, you then get games like GTA Online which (on the first few weeks at least) was clearly designed around trying to encourage people to buy ingame currency for real money by charging ridiculous amounts for dying and guns + ammo.
When games get designed around microtranactions is where the real problem lays. I don't see anything wrong with map packs and even funky weapon skins (providing they're not included on the disc then "unlocked" by buying them separately.
I despise these things.
It's bad enough when they rip pieces out of games and then release them as DLC and call them "extra content" what a load of BS. It's very very rare that it is indeed extra content. Now we see this crap coming into gaming more and more. It will get to the point where i am playing an RPG and if i want to upgrade my armor or weapons i will need to pay REAL money for it.
DLC like i was talking about above and Microtransactions don't do the gaming world any good, it takes the fun out of it and ruins it.
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