Here we go again.
Once more, we're hearing about Microsoft planning another round of layoffs at Xbox—marking the fourth major wave over just two years. This news, reported by Bloomberg’s Jason Schreier, doesn’t specify which teams are hit, but the word 'substantial' keeps popping up. And if past patterns tell us anything, this isn’t going to be easy.
To look back: in January 2024, about 1,900 people, mostly from Activision Blizzard King, lost their jobs. Come May, three ZeniMax studios shut down. By September, another 650 were laid off. And now, mid-2025, even with rising Game Pass numbers and hits like Oblivion Remastered, DOOM: The Dark Ages, and Forza making waves—even appearing on PlayStation—Microsoft still seems driven to cut costs. What's even more troubling isn’t just the layoffs; it’s the pattern that repeats itself. Layoffs come, the company hits new highs with game releases, revenue spikes for a quarter, then it all happens again. They posted $70.1 billion in revenue last quarter, with a net income of $25.8 billion. Yet, despite the profits and margins, the people behind the scenes—those making the magic happen—are still being shown the door.
Developing games isn’t a solo effort. It involves teams of artists, testers, coders, QA folks—all working together to create an experience. When layoffs hit, it’s not just numbers disappearing; its stories left unfinished, prototypes put on hold, momentum lost. Maybe we should stop accepting this as normal. Profits shouldn’t be celebrated when they come from routine layoffs. We've seen this story too many times. From the outside, it might seem like a smart strategy, but inside, it feels like exhaustion. For those worried about whether their job will still be there next Monday, the success of their last shipped game offers little comfort.
We don’t know who’s next or who might pack up their desk. But one thing is clear: the industry’s biggest threat isn’t a lack of creativity. It’s a growing indifference that could be more damaging than anything else.
Once more, we're hearing about Microsoft planning another round of layoffs at Xbox—marking the fourth major wave over just two years. This news, reported by Bloomberg’s Jason Schreier, doesn’t specify which teams are hit, but the word 'substantial' keeps popping up. And if past patterns tell us anything, this isn’t going to be easy.
To look back: in January 2024, about 1,900 people, mostly from Activision Blizzard King, lost their jobs. Come May, three ZeniMax studios shut down. By September, another 650 were laid off. And now, mid-2025, even with rising Game Pass numbers and hits like Oblivion Remastered, DOOM: The Dark Ages, and Forza making waves—even appearing on PlayStation—Microsoft still seems driven to cut costs. What's even more troubling isn’t just the layoffs; it’s the pattern that repeats itself. Layoffs come, the company hits new highs with game releases, revenue spikes for a quarter, then it all happens again. They posted $70.1 billion in revenue last quarter, with a net income of $25.8 billion. Yet, despite the profits and margins, the people behind the scenes—those making the magic happen—are still being shown the door.
Developing games isn’t a solo effort. It involves teams of artists, testers, coders, QA folks—all working together to create an experience. When layoffs hit, it’s not just numbers disappearing; its stories left unfinished, prototypes put on hold, momentum lost. Maybe we should stop accepting this as normal. Profits shouldn’t be celebrated when they come from routine layoffs. We've seen this story too many times. From the outside, it might seem like a smart strategy, but inside, it feels like exhaustion. For those worried about whether their job will still be there next Monday, the success of their last shipped game offers little comfort.
We don’t know who’s next or who might pack up their desk. But one thing is clear: the industry’s biggest threat isn’t a lack of creativity. It’s a growing indifference that could be more damaging than anything else.
This post was last modified: 06-29-2025, 06:14 PM by Tekkie Da.
tekkieDa@tektove.com:~$ ▌
