Xbox Expected To Go Through More Layoffs Amid Restructuring In July

Expert Verified By

More Xbox Studios Face Threat of Closure!

Story Highlight
  • Xbox has recently closed four of its studios.
  • These measures appear to have been part of a major restructuring plan from Xbox.
  • The publisher is expected to cut costs further in July, leading to more layoffs and studio closures.

2024 has not been great so far for Microsoft since it has been criticized for shutting down creative studios like Tango Gameworks, Arkane Austin, and more. Even before that, the publisher laid off around 2,000 employees.

Though many were hoping that Microsoft would put a pause on this current trend, it has been reported that Xbox will go through further restructuring in the coming months. 

Why it matters: Microsoft’s layoffs have led to a lack of trust and frustration among developers and fans. The gaming giant promised to provide security for its acquired developers but seems to be failing at keeping its word.

During the latest episode of First Ring Daily, Brad Sams talked about Microsoft’s recent studio closures, stating that the fiscal year ends in 60 days, and before the new fiscal year starts, more shuffling is expected.

While Paul noted that Microsoft has already done enough, Brad Sams was quick to counter and said that this is far from the end.

There will be continued shuffling in, roughly, the July timeframe.

-Brad Sams

Similar reports came from Bloomberg earlier this week. Sources reported that Xbox had plans to cut costs further.

It seems all of this is happening because of the Activision Blizzard merger. The Bloomberg report clarified that executives are now scrutinizing Microsoft’s gaming division more than usual since they anticipate a bigger return on the massive $70 billion investment.

While nothing specific has been said, this restructuring is likely to cause further layoffs, as seen in Embracer Group’s case. Xbox may also resort to studio closure again, but we hope it does not come to that.

Xbox Game Studios Closure
Xbox Has Already Closed 4 of Its Studios

With recent releases like Hellblade 2 shaping up to be commercial disappointments, fans fear for Ninja Theory. If Tango Gameworks’ closure has shown anything, it’s that Xbox is now ruthless in its cost-cutting measures.

With upcoming games like Gears 6 and Doom expected to show up soon, Microsoft will look toward closing the fiscal year with a positive outlook. Xbox is going through a challenging period, so it needs all the help it can get.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Hollow Knight: Silksong Now Has Over 2x The Negative Steam Reviews Of The Original

Steam-curated data reveals that negative Steam reviews for Hollow Knight: Silksong have now doubled when compared to the original game.

Uncharted Somehow Has Its Very Own Slop Clone On PlayStation

The Uncharted franchise seems to have spawned its own low-budget clone, which is now available to wishlist on PlayStation.

Nvidia RTX 50 Super Series Not Planned For Release In Near Future, Reveal Sources

The Nvidia RTX 50 Super lineup may not show up anytime soon, with sources shunning past reports of a Q4 2025 release.

Console Revenue Expected To See The Most Growth in The Gaming Market in 2025

According to a new report, console revenue is expected to lead the way in 2025, overtaking PC and behind mobile gaming.

OEMs Call Intel’s Panther Lake “Pathetic Lake” Amid Ongoing Performance and Driver Issues

The Intel Panther Lake has serious silicon, efficiency, speed, and driver issues two months after its launch, and some OEMs are calling it "Pathetic Lake".