Xbox is facing one of the biggest shakeups in its history, and we're breaking down everything happening across Microsoft's gaming division.
This week we discuss:
💚 Microsoft's latest wave of Xbox layoffs, with approximately 1,600 employees let go on July 6 and another 1,600 reportedly expected by the end of the 2027 financial year—nearly 20% of Xbox's workforce.
⚙️ Reports that the id Software engine (id Tech) team has been reduced to a single person.
🏢 Cuts affecting Bethesda Game Studios, along with reports that Compulsion Games and Double Fine have been allowed to become independent once again.
🎮 Microsoft reportedly selling Undead Labs and Ninja Theory, while continuing to help fund the completion of State of Decay and Senua's Saga.
⚠️ Reports that Arkane Studios may still be at risk.
☢️ Obsidian Entertainment reportedly shifting resources away from Avowed 2 to work on a Fallout project following significant layoffs, though Avowed 2 may still remain in development.
👋 The departure of Kevin LaChapelle, Microsoft's Vice President of Xbox Platform, after 37 years. He helped oversee Xbox's backwards compatibility program and cloud streaming initiatives.
🖥️ Reports that Xbox's Hardware and Advanced Technology divisions have been heavily reduced.
What does all of this mean for the future of Xbox? Is Microsoft changing course, or are these cuts a sign of much bigger problems ahead?