Update:
We’ve since received a statement from Microsoft on the current matter.
We continue to implement organizational and workforce changes that are necessary to position the company and teams for success in a dynamic marketplace. – A Microsoft Spokesperson
They also informed us that the overall impact represents less than 4% of Microsoft’s global workforce, and the reduction spans all levels, teams, geographies, and tenure. While their gaming division is impacted, it’s not taking the majority of the hit. That said, specifics are being withheld out of respect for employees at this time.
Original Story…
The folks at Xbox are currently having a difficult time. That much we know, thanks to the latest round of layoffs. We’ve seen rumors and reports alerting fans that this was coming, and today, the first few rounds of layoffs are going out. However, it seems that there might be more problems right now, which paint a far bleaker picture.
Thanks to Reddit, we’re learning about two industry insiders who have chimed in with their insights. Admittedly, both are working with information that’s scarce and are looking further into the matter. However, if these reports prove to be true, it appears that Microsoft may be facing a downward spiral for some of its Xbox gaming division plans.
The first comes from NateTheHate. According to a post online, all that NateTheHate reportedly said was that there is a lot of chatter behind the scenes, and it all sounds awful. Meanwhile, Alex Donaldson took to Bluesky and noted that he had heard what sounded like a ‘throwing up their hands and moving on’ situation with Xbox. Although, it seems that post has since been removed from Alex, so it could be that their initial reports are wrong.
What that could mean is anyone’s guess, as both have said they are still digging through for more information. Of course, we are aware that new hardware is planned, as Microsoft recently announced a partnership with AMD. However, that could change, as we’ll just have to wait and see.
Even Jason Schreier noted that more information could be coming in just a few hours time after the west coast starts to chime in.
As mentioned, layoffs are happening, with the first round targeting King and ZeniMax Media. That said, another report surfaced online today, suggesting that Rare is also being targeted. If that’s the case, then it’s believed that Rare is also cancelling their current upcoming video game project, Everwild.
The next few days will be interesting to see what the future of Xbox holds. We’re sure that there will be plenty of rumors and reports on what studios and game projects are affected by the layoffs. As we previously reported, it appears that those affected by the layoffs are encouraged to apply for other positions within Microsoft, as their applications will receive priority review.
