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Dark Days for the Gaming Industry: Xbox Lays Off Staff, Shuts Down a Promising Studio, and Cancels Games
One of the biggest stories of the week is the mass layoffs in Microsoft’s gaming divisions that began yesterday. This move is part of a broader internal restructuring at the company: nearly 9 000 employees will be let go — around 4% of Microsoft’s global workforce. For Xbox studios, this isn’t the first major shake-up this year. However, the consequences of these new layoffs appear even more serious than previous ones: Microsoft hasn’t just let people go — it has also canceled multiple projects, including one of the most anticipated Xbox exclusives. That’s what today’s article is about.
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July 3, 2025