Summary
- Microsoft is reportedly planning a third round of Xbox layoffs affecting many of its gaming studios.
- Between 1,000 to 2,000 employees could lose their jobs, with some game studios possibly closing.
- Turn 10, the studio behind Forza Motorsport, is expected to face cuts.
- Xbox employs over 21,000 people across multiple studios worldwide.
- The company has invested in AI tech to help game development despite the layoffs.
Massive Xbox Layoffs in Gaming Division
Microsoft is reportedly planning a large wave of Xbox layoffs that could impact 1,000 to 2,000 workers in its gaming division. This may include closing some development studios entirely. The news comes as a shock to many in the gaming industry, with rumors circulating about how deep the cuts will go.
George Broussard, co-founder of 3D Realms, shared on Twitter that people at nearly every Xbox studio are feeling worried about job security. Industry insiders have also mentioned that UK Xbox studios are buzzing with “negative chatter.”
Turn 10 Studio Might Be Hit
Tom Warren from The Verge reported that Turn 10, the studio behind the popular Forza Motorsport series, is bracing for layoffs. However, it’s not yet clear how many employees will be affected or if the studio will remain open.
Industry reporter Andy Robinson from Video Games Chronicle pointed out that there’s been a lot of worry and nervous talk inside some UK-based Xbox studios. Many employees are feeling anxious and just want some clear answers. But the tricky part is—they’re not sure when any official news will come, and it might take a few more days.
Microsoft’s Xbox division employs around 21,800 people worldwide, spread across Xbox Game Studios, Bethesda, and Activision Blizzard King. These layoffs are part of a larger company reorganisation and cost-cutting effort.
AI in Game Development by Microsoft
Despite the layoffs, Microsoft continues to invest heavily in AI for game development. Xbox teams are using generative AI tools like Muse and InWorld to help create gameplay and automate programming tasks.
It remains to be seen how these layoffs will affect Xbox’s game output and the morale of its employees. Fans hope for clear communication and support for those impacted during this difficult time.
