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Microsoft Spent $80 Billion On Its Bet For Xbox Game Pass. It Did Not Work.A report indicates Microsoft spent nearly $80 billion over the past decade on initiatives to boost Xbox and Xbox Game Pass, but these efforts did not meet growth expectations. Despite significant investments in acquisitions and third-party deals, Game Pass subscriber numbers have stagnated, leading to recent layoffs and studio divestitures as Microsoft aims to refocus its strategy.- There Is No Reason To Buy Another PlayStation Or XboxThe author argues that upcoming PlayStation and Xbox consoles will be too expensive and lack compelling reasons to purchase, especially with the shift to digital-only distribution. Concerns are raised about the impact on the used games market, accessibility for players with poor internet, and the overall viability of the console market as attention shifts to mobile and other forms of entertainment.
Xbox’s New Plan After Brutal Cuts: Focus On The Thing Called XboxFollowing significant layoffs, Xbox is refocusing its strategy on its core business, including its flagship console hardware and major IPs like Minecraft. This shift aims to address issues like spreading resources too thin and declining hardware revenue, despite industry-wide cost increases and component shortages. The restructuring also involves making some studios independent or selling them off.
State of Decay 3 could reportedly skip Xbox Game Pass after Microsoft dumped its studioFollowing Microsoft's significant restructure and layoffs, Undead Labs, the developer of State of Decay 3, is reportedly moving to a new management structure or becoming independent. This change could mean that State of Decay 3 will not be required to launch on Xbox Game Pass, despite its recent gameplay reveal and 2027 release window.
Xbox retreats again – but to where? | OpinionXbox CEO Asha Sharma announced significant layoffs affecting thousands of employees across various studios as part of a company 'reset' to focus on profitable franchises. This move raises questions about the future of Xbox's first-party strategy, its Game Pass subscription service, and the upcoming console generation, particularly given the high cost of components and the blurring lines between PC and console gaming.
Xbox CEO amidst layoffs: 'I think our core has to be healthy'Xbox CEO Asha Sharma addressed significant layoffs and a major restructure within the company, stating the core business needs to be healthy. She highlighted the need for new business models, including exploring hardware options like 'buy now, pay later' and expanding availability on mobile and PC. Sharma also noted that Xbox's operating margins are considerably lower than comparable businesses, attributing challenges to surging component costs and overextending studio systems.
Xbox Game Pass reportedly boasts around 30m subscribersXbox Game Pass reportedly has around 30 million subscribers, a figure below Microsoft's 2026 projection of 77 million users. New CEO Asha Sharma acknowledged that while the service and multi-platform strategy have provided value, growth has not met expectations, leading to recent staff cuts and a strategic reset for Xbox. The service has seen fluctuations in subscriber numbers previously, with a price increase in 2025 followed by a reduction that reportedly improved acquisition and retention.
Doom creator John Romero praises the devs who carried on id Software's legacy as Microsoft reportedly lays off half of the studio: "The last few games showed real care, skill, and respect"Doom co-creator John Romero has expressed his sympathy for id Software employees affected by recent layoffs, which reportedly cut the studio in half. Microsoft's Xbox division is undergoing a significant restructure, impacting ZeniMax Studios and its subsidiaries, including id Software, Bethesda Game Studios, and Arkane Studios. Despite reports of Bethesda focusing on its strongest franchises like Doom, Quake, and Wolfenstein, the extensive layoffs at id Software, particularly among coders working on the id Tech engine, raise concerns about the future of these series.
Xbox has lost five studios – so who is left to make new video games?Xbox has undergone significant layoffs, impacting approximately 3,200 staff members and leading to five studios divesting from the company. Xbox leadership aims to refocus on core franchises and expand its daily audience to over a billion people through its services. The article details the remaining studios, their current projects, and their future prospects under this new strategy.
"We simply spread ourselves too thin" – Xbox's Asha Sharma on firm's restructuring plansXbox CEO Asha Sharma detailed the company's restructuring plans, which include 3,200 layoffs and the divestment of five internal studios: Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane Lyon. Sharma stated that Xbox "spread itself too thin" with various bets, leading to a weakening of its core business and a need to streamline management and refocus resources.
Nobody Plays New Games Anymore: The 2026 Playtime Data | TAGRecent data from Valve's Steam Replay and Newzoo reports indicate that new game releases consistently capture only 14-17% of player playtime on PC, with older titles dominating the remaining hours. This trend holds true across platforms, with Xbox showing the highest engagement for new releases at 18%. The analysis suggests this is due to factors like the prevalence of live service games, adult time constraints, and the value proposition of established back-catalog titles, rather than a decline in player interest.
What exactly is going on with Marvel's Blade? Arkane Lyon's fate remains unclear in the wake of Xbox's controversial 'reset'Microsoft's Xbox division is undergoing significant layoffs and studio restructuring, impacting Arkane Lyon and its in-development game, Marvel's Blade. While the studio is in consultation due to French labor laws, reports suggest Blade is safe from cancellation despite being over-budget and internally delayed. Todd Howard of Bethesda Game Studios recently expressed positive impressions of the game.
Blizzard devs in the dark for now as president of the World of Warcraft and Diablo studio says they "can expect to hear more" soon about Microsoft's plan for the studio as Xbox faces 3,200 job cutsAmid significant layoffs impacting approximately 3,200 positions at Xbox, Blizzard Entertainment president Johanna Faries has communicated to staff that more details regarding the studio's future under Microsoft will be shared soon. While Blizzard's major franchises like World of Warcraft and Diablo appear largely untouched for now, the company is bracing for potential restructuring and changes in the coming months.
Xbox Game Pass subscription numbers are reportedly well below where Microsoft wants them to beXbox Game Pass subscriber numbers have reportedly fallen to 30 million, significantly below Microsoft's target of 77 million by 2026. This decline follows a substantial price increase for Game Pass Ultimate and a change in strategy regarding day-one releases for Call of Duty titles. New Xbox CEO Asha Sharma cited Game Pass growth troubles as a reason for recent job cuts within the Xbox division.
Bethesda boss says the company must focus on its "strongest franchises" as Xbox layoffs reportedly hit The Elder Scrolls and Fallout makers hardFollowing significant layoffs impacting Bethesda Game Studios and id Software, Bethesda president Jill Braff has informed staff of a strategic shift to concentrate on the company's strongest franchises, including The Elder Scrolls, Fallout, Doom, and Quake. This move aims to ensure a more stable business foundation and sustainable growth for future investments in its intellectual properties.
Ex-Xbox dev slams game execs as ‘money grubbing idiots’ in quote of the yearA former Bungie and 343 Industries developer, Dan Callen, has criticized game executives, calling them 'stupid detached money grubbing idiots.' Callen shared an anecdote about former Xbox executive Don Mattrick suggesting Halo 4 should implement a real money auction house for mech skins, a concept that had previously failed in Diablo 3. This criticism comes amid recent layoffs at Sony and Microsoft, highlighting ongoing issues within the games industry.
Evening Reading - July 6, 2026The video game industry is facing significant challenges, with Microsoft confirming mass layoffs that will lead to Double Fine Productions and Compulsion Games becoming independent. Xbox has appointed Helen Chiang, head of Mojang Studios, as its first Chief Operating Officer. Additionally, Nintendo plans to discontinue original Switch consoles in Europe in 2027, while Microsoft is being sued in Wisconsin over data center practices.
Xbox’s Game Pass Subscriptions Currently Hovering Around 30 Million – RumorA rumor suggests that Xbox Game Pass subscriptions are currently around 30 million, a figure lower than the 34 million reported in February 2024 and significantly below Microsoft's goal of 77 million by fiscal year 2027. Despite this, Xbox CEO Asha Sharma stated the service did not grow as expected but indicated continued investment in higher priority projects, including The Elder Scrolls and Fallout franchises.
The Gaming Industry Is Eating Itself AliveXbox is undergoing a massive restructuring, including 3,200 layoffs, impacting numerous studios and divisions like Activision, Bethesda, and Blizzard. While some studios regain independence and first-party projects remain safe for now, the article criticizes Xbox's overall strategy, citing Game Pass's performance and declining hardware revenue. The piece also touches on PlayStation's similar issues with digital ownership and preservation, painting a bleak picture for the future of gaming costs and ownership.
The games industry reacts to Xbox layoffs: 'We are clearly at a turning point'Microsoft's Xbox division has announced significant layoffs, impacting approximately 3,200 employees and leading to the closure or restructuring of four game studios. This move has drawn widespread reactions from industry figures, expressing shock, sorrow, and anger, with many calling it a turning point for the game industry. The layoffs occur amidst Microsoft's continued investment in artificial intelligence, a decision that has drawn criticism for its perceived prioritization over game development talent.