Microsoft/Xbox: The Carnage Continues, 9,000 Layoffs, Canceled Games, Shutting Studios

Microsoft has dropped a bombshell: it’s laying off 9,000 employees, many from its Gaming division, Xbox. It’s part of an ongoing corporate drama with real-life consequences. Internally, studios are shutting down, games are being canceled, projects derailed, and talent is jumping ship. All in the name of a “brighter tomorrow” that Phil Spencer has been touting for years. A future where it seems there’s no room for 9,000 people. In a corporate memo that struck a friendly tone yet delivered a chilling message, Phil Spencer explained these layoffs are meant to position the gaming division for long-term success. Translation: streamlining the team to boost profits, realign priorities, and keep shareholders happy. All while couching these decisions in buzzwords like ‘agility,’ ‘strategic growth,’ and ‘efficiency.’ Even as jobs are cut, the company promises a stronger-than-ever platform, a richer game catalog, and significant new opportunities. Sacrificed studios, broken promises: The Initiative, Perfect Dark, Everwild, Turn 10 (Forza), King (Candy Crush), ZeniMax – these are among the casualties. It’s not just a coincidence. Microsoft has been trimming the fat throughout 2024: 1,900 positions cut in January, 6,000 in May, 305 in June, 650 in September… This July wave marks the final major round of cuts. A policy of continual downsizing in a company raking in billions annually.

How did it come to this? By spreading itself too thin across initiatives like Game Pass, Cloud services, hardware, third-party publishers, and colossal acquisitions, Microsoft has become like a binge eater struggling to digest its feast. Studios and games now feel like mere digits on a spreadsheet instead of human creations. The $69 billion acquisition of Activision Blizzard, initially touted as a blessing, instead placed immense pressure on its gaming division, demanding immediate returns. A chilling speech thanking laid-off employees for their creativity and inviting them to look elsewhere feels downright cynical. Behind the glossy Game Pass offerings and the Play Anywhere facade, Xbox is grappling with an existential crisis. It’s not a strategy anymore; it’s a purge. A ruthless culling where human lives are secondary to the strategic plan. We’re told it’s for a better ‘restart,’ but to what exactly? As we hear more about the new era of Xbox, it feels like watching a cycle end. This time, though, it’s not just consoles dying; it’s careers.

As we delve into the corporate restructuring at Microsoft and its impact on beloved gaming divisions like Xbox, it’s crucial not to overlook specific casualties that paint a grim picture. One such incident involves the alleged fake demo of Perfect Dark, a game whose promise was cut short by the very rhetoric of strategic growth and efficiency. Sophie Laurent’s insightful piece, “2024 Perfect Dark Demo Allegedly Fake, Tongues Loosening Since Game’s Cancellation…” (July 3, 2025), meticulously unravels the web of false promises and deceptive marketing tactics employed in the game industry. Readers keen to explore how a once-promising project became an illusion will find Laurent’s analysis both enlightening and sobering. Check out 2024 Perfect Dark Demo Allegedly Fake, Tongues Loosening Since Game’s Cancellation… for a deeper dive into this disillusioning episode in Xbox’s history.

Amidst the restructuring and challenging times at Xbox, there’s light on the horizon. Bruno Pferd delves into the details of Microsoft’s ongoing gaming projects in his insightful piece “Xbox Has Over 40 Projects in Development,” published on July 3, 2025. Despite recent layoffs and cancellations, including those affecting Perfect Dark and The Initiative studio, Xbox is still bustling with over 40 active development projects. Curious to see what the future holds? Check out Bruno’s article Xbox Has Over 40 Projects in Development for an updated look at which games are continuing their journey towards release.

While the news about Microsoft’s layoffs might cast a shadow over the gaming industry, there is light at the end of the tunnel with some exciting releases on the horizon. For fans of anime and action-packed combat games, “My Hero Academia: All’s Justice” has been announced for PS5, Xbox Series, and PC My Hero Academia: All’s Justice Announced. Authored by Ahmed Hassan and published on July 3, 2025, this post details the upcoming fighting game inspired by the beloved series. With high-quality graphics, a diverse cast of characters, and an engaging combat system, “All’s Justice” promises to be a thrilling addition to any gamer’s library. Don’t miss out on diving into the final battle from My Hero Academia’s storyline!