Xbox Weighs Mass Layoffs in 5,500 Microsoft Cuts as It Reassesses $20 Billion Games Strategy
Updated
Updated · Kotaku · Jul 2
Xbox Weighs Mass Layoffs in 5,500 Microsoft Cuts as It Reassesses $20 Billion Games Strategy
3 articles · Updated · Kotaku · Jul 2
Summary
Up to 5,500 Microsoft job cuts could hit Xbox especially hard, with Compulsion Games, Ninja Theory and Double Fine reportedly fighting for their futures and Undead Labs and Arkane also seen at risk.
Microsoft says it is not cutting overall game spending, but shifting roughly the same content budget toward bigger franchises after Xbox invested $20 billion over five years and still posted declining revenue.
That reset reflects a broader problem: Xbox has struggled to ship hit games on time, and even well-reviewed releases such as Avowed and The Outer Worlds 2 reportedly missed internal sales goals after six-year development cycles.
Inside Xbox, the layoffs are fueling confusion over whether management is building a stronger exclusive pipeline or simply trimming weaker projects to lift margins, a question sharpened by years of cuts without reversing the platform's slide.