Threads
- Insider suggests gearing up for more Xbox layoffs to come.
- He also revealed that the division has barely been profitable, aside from a few quarters during the Xbox 360 era.
- As we advance, the gaming giant will likely have only a handful of teams, while others will slowly decline after layoffs and cost-cutting measures.
June 2 was one of the worst days in Microsoft’s history, with the company laying off 9,000 employees at once. Xbox was deeply impacted by this workforce reduction, with several projects being canceled and one studio shut down completely.
However, this won’t be the last of the downsizing we’ll see, at least from Xbox’s end. An insider has suggested that this isn’t the last round of layoffs for Xbox by a long shot.
Why it matters: Layoffs are never a good sign in the industry, and with Xbox owning most of the gaming studios, it’s even a bigger problem. Many of the industry’s talent lies under their wing, and it is looking to go to waste.
On ResetEra, insider SneakerSO shared more information and insight on these recent Xbox layoffs. According to him, budgets for projects are severely cut, while the same quality as pre-layoffs is expected.
Most of the employees are now trained to use CoPilot/ChatGPT and utilize new AI models for asset generation. Microsoft has also made AI usage among its employees reportedly mandatory. New workflows are also being introduced among projects.
The most surprising revelation from the insider was that Xbox has barely been profitable in its 25-year existence. According to his information, aside from a few quarters in the 2nd half of the Xbox 360 era, the company hasn’t been generating profits much.
However, the reports of Activision Blizzard merged into Microsoft after the acquisition did improve their profitability, but that seemingly isn’t enough.
Going forward, Xbox is expected to have only a handful of teams, including those involving Blizzard, Call of Duty, and Minecraft. All other teams will slowly die due to layoffs and budget cuts, rendering all the recent acquisitions pointless.
What are your thoughts on the current Microsoft and Xbox situation? Let us know in the comments below, or join the discussion at the official Tech4Gamers Forums.
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[News Reporter]
Shaheer is currently pursuing a Business degree while also working as a part-time Content Writer. With his deep passion for both writing and video games, he has seamlessly transitioned into a role as a Journalist. Over the past two years, Shaheer has contributed as a freelancer to various websites and landed positions on acclaimed platforms like Gamerant. Currently, his role at Tech4gamers is as a Features Writer, but he also covers News occasionally. Shaheer’s favorite gaming franchises are Assassin’s Creed and the God of War series.
Get In Touch: shaheer@tech4gamers.com
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