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Apparently massive layoffs incoming for Xbox Game Studios

Posted on 7/1/25 at 8:09 pm
Posted by Roaad
White Privilege Broker
Member since Aug 2006
81997 posts
Posted on 7/1/25 at 8:09 pm
Wondered when the ax-man was coming for them.

Mr Matty reported on his Channel
Posted by finchmeister08
Member since Mar 2011
39730 posts
Posted on 7/1/25 at 8:18 pm to
Posted by geauxtigers87
Louisiana
Member since Mar 2011
26917 posts
Posted on 7/1/25 at 8:20 pm to
their projections on game pass are pure fantasy
Posted by Roaad
White Privilege Broker
Member since Aug 2006
81997 posts
Posted on 7/1/25 at 8:29 pm to
Somehow this is going to turn into the Playstation Cult dunking on the Xbox Cult.

Even though Playstation just had massive layoffs themselves
Posted by RemouladeSawce
Uranus
Member since Sep 2008
17135 posts
Posted on 7/1/25 at 8:33 pm to
Anyone in either cult in 2025 should be a candidate for institutionalization

Shocking that layoffs would be called for. Avowed was such a monumental success, surely Obsidian is safe /s
This post was edited on 7/1/25 at 8:42 pm
Posted by StansberryRules
Member since Aug 2024
4319 posts
Posted on 7/1/25 at 8:50 pm to
Posted by theducks
Where The Blazers Play
Member since Aug 2013
14215 posts
Posted on 7/2/25 at 3:17 am to
I’m absolutely shocked. Shocked I tell you
Posted by Blitzed
Member since Oct 2009
22001 posts
Posted on 7/2/25 at 5:19 am to
quote:

Somehow this is going to turn into the Playstation Cult dunking on the Xbox Cult. Even though Playstation just had massive layoffs themselves


I want it all to burn. Only the strong will survive and gaming will be better because of it.
Posted by sicboy
Because Awesome
Member since Nov 2010
79321 posts
Posted on 7/2/25 at 6:55 am to
I just want these studios to survive. I get it takes money to make games, but you sell yourself off and then you're at the mercy of people who don't understand the game market and eventually will make business decisions, not game decision. And the only thing they know to do is shutter it all.

I'm a huge Bethesda fan, and I worry they sold their souls to the devil under the false idea of "we're too big for that to every happen to us", but just from interviews from people who have left Bethesda, they're clearly at the mercy of big corporate and it's killing the magic they've had before (see Starfield..........a game I still have 200 hours in).

I wish they'd let these studios attempt to buy themselves out, or just let them go instead of killing them outright. But that doesn't happen.
Posted by imjustafatkid
Alabama
Member since Dec 2011
62677 posts
Posted on 7/2/25 at 7:50 am to
I've seen reports that the layoffs are supposed to happen today, so I guess we'll see.
This post was edited on 7/2/25 at 7:58 am
Posted by sicboy
Because Awesome
Member since Nov 2010
79321 posts
Posted on 7/2/25 at 8:58 am to
LINK

quote:

As reported last week, Microsoft is again laying people off from its Xbox division, this time at mobile game developer King, with Bloomberg reporting that around 10% of the studio is being cut, or 200 jobs.

Sources also confirm to Windows Central that there are cuts to ZeniMax Media's marketing team in London, U.K. as well as Rockville, Maryland in the U.S, though the exact scale isn't known at this time.

Layoffs are also expected at some of the U.S. teams under the Xbox division, with details to come in the near future.


Internal message from Spencer:

quote:

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.

Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.

Phil



People in charge need to do better, but they're safe.
Posted by VinegarStrokes
Georgia
Member since Oct 2015
14054 posts
Posted on 7/2/25 at 9:03 am to
quote:

their projections on game pass are pure fantasy


No...this can't be!
Posted by StansberryRules
Member since Aug 2024
4319 posts
Posted on 7/2/25 at 9:17 am to
quote:

Our platform, hardware, and game roadmap have never looked stronger.


I love how corporations always say this. Nothing says "we're the strongest we've ever been" than your 4th round of major layoffs in like 3 years.
This post was edited on 7/2/25 at 10:01 am
Posted by BulldogXero
Member since Oct 2011
10197 posts
Posted on 7/2/25 at 9:34 am to
quote:

Somehow this is going to turn into the Playstation Cult dunking on the Xbox Cult.


Well for me it's not a matter of Playstation vs Xbox so much as it is convincing everyone that one company buying up all these studios is very bad, whether you are Microsoft, Embracer Group, Sony, or whomever.

Posted by imjustafatkid
Alabama
Member since Dec 2011
62677 posts
Posted on 7/2/25 at 10:56 am to
quote:

People in charge need to do better, but they're safe.


He specifically says they're removing layers of management, so not sure what you mean by that.

quote:

we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness
Posted by imjustafatkid
Alabama
Member since Dec 2011
62677 posts
Posted on 7/2/25 at 11:10 am to
Looks like Microsoft is laying off about 9,000 people across all divisions. About 2,000 of those are in the gaming division.

Looks like some MMO that was being worked on at Zenimax since 2018 has been canceled.

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This post was edited on 7/2/25 at 11:12 am
Posted by imjustafatkid
Alabama
Member since Dec 2011
62677 posts
Posted on 7/2/25 at 11:16 am to
This is what bothers me. They're essentially growing their workforce while laying off workers. I hope they are denied every H1-B visa request.

The ironic part is, with how woke the tech industry has become, most of the people being laid off probably oppose Trump's immigration policies.

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Posted by caro81
Member since Jul 2017
6038 posts
Posted on 7/2/25 at 12:11 pm to
is this a surprise to anyone?
Posted by Roaad
White Privilege Broker
Member since Aug 2006
81997 posts
Posted on 7/2/25 at 12:14 pm to
It was bound to come for them, eventually.
Posted by CarolinaGamecock99
Member since Apr 2015
24524 posts
Posted on 7/2/25 at 12:14 pm to
Unfortunately most ‘conservatives’ support this H1B garbage
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