Man behind Xbox backwards compatibility laid off as 25% of Obsidian devs cut

Microsoft has laid off Kevin LaChapelle, the key figure behind Xbox's backwards compatibility and cloud gaming features, as part of broader cuts affecting 3,200 employees. Several development studios, including Compulsion Games and Double Fine, have become independent or are being sold off. Approximately 25% of Obsidian Entertainment's staff has also been impacted by these layoffs.

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COMPANY Microsoft
GAME Pentiment
GAME Grounded 2
COMPANY Obsidian Entertainment
COMPANY Xbox
GAME The Outer Worlds 2

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9 articles · 8 sources 7 days ago

Xbox CEO Admits Overextension Led to Layoffs

Xbox CEO Asha Sharma has revealed that significant layoffs and restructuring were necessary due to a lack of focus. She stated the company spread its resources too thin across various ventures. These changes aim to refocus on the core console business and address hardware challenges.

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Sources covering this · 8

Engadget Podcast: Xbox resets with layoffsThis episode of the Engadget Podcast discusses the recent layoffs at Microsoft's Xbox division. The conversation features Mike Futter of the Virtual Economy Podcast, offering insights into the situation. Engadget · 4 days ago
Man behind Xbox backwards compatibility laid off as 25% of Obsidian devs cutMicrosoft has laid off Kevin LaChapelle, the key figure behind Xbox's backwards compatibility and cloud gaming features, as part of broader cuts affecting 3,200 employees. Several development studios, including Compulsion Games and Double Fine, have become independent or are being sold off. Approximately 25% of Obsidian Entertainment's staff has also been impacted by these layoffs. Metro UK · 6 days ago
Xbox CEO Asha Sharma points the finger at Phil Spencer's strategy for yesterday's sweeping layoffs: 'We…Xbox CEO Asha Sharma has attributed recent sweeping layoffs and studio spinoffs to the previous strategy under Phil Spencer, stating that "we spread ourselves too thin" by making too many bets and not focusing on the core business. Sharma believes a return to a more conventional, console-focused approach is necessary for Xbox's health, despite rising hardware costs and potential customer debt from new financing models. PC Gamer · 6 days ago

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