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New Concerning Report Says Xbox King Studio Replacing Staff With AI Tools

July 15, 2025 by Dennis Patrick

AI continues to be a double-edged sword.

AI continues to be a double-edged sword. It can offer incredible benefits, but at the same time, it comes at a cost. If the report proves to be genuine, it appears that Xbox King Studio is seeking to utilize AI tools to expedite content creation. However, it will come at a great cost to the staff. Could we be witnessing the first big wave of AI replacing staff of these behemoth studios?

Xbox is coming off a terrible week, and these latest headlines are not helping paint a positive light. If you recall, Microsoft recently underwent a series of layoffs, which resulted in numerous cancellations, including Everwild, and even shut down a studio, The Initiative. However, today we’re learning that Microsoft’s King studio might not only be laying off a sizable number of staff but also replacing them with AI tools.

This news stems from Mobilegamer.biz, which spoke with sources familiar with what’s happening at King. As a refresher, King is a game developer known for its mobile titles, with Candy Crush being its biggest success. It was in 2016 that Activision Blizzard picked up the studio, and not long after, Microsoft acquired Activision Blizzard.

King Studio Replacing Staff With AI Tools?

Sources have informed Mobilegamer.biz that King had developers work on and train AI tools to help build and craft levels more quickly. Now, those developers who spent all these months building and crafting these tools are being booted. Those tools that they delivered would essentially be replacing those staff individuals.

Most of level design has been wiped, which is crazy since they’ve spent months building tools to craft levels quicker. Now those AI tools are basically replacing the teams. Similarly the copywriting team is completely removing people since we now have AI tools that those individuals have been creating. – Staffer Source Mobilegamer.biz

According to the released memo, it’s noted that the industry is changing, and their business has not been growing. As a result, the studio had to explore ways to remain profitable with fewer people in meetings, fewer overlapping responsibilities, and fewer stakeholders for each project.

This report doesn’t look good if true. We hate to see the constant barrage of layoffs at these massive companies, and then add the fact that AI is replacing them. However, this is also something we’ve seen developers comment on. For example, a former Rockstar Games developer noted that AI is likely being used for GTA 7, which would help speed up development and cut down production costs.

Meanwhile, other developers are hopeful for AI tools to help speed up production overall. For smaller teams, this could help get their foot in the door with game productions. We might even see more risks being taken on games. So again, AI is a double-edged sword, no matter how you look at it.

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Category: UpdatesTag: AI, King, Xbox, xbox series x

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