Xbox Faces Layoffs and Game Cancellations Amid Microsoft’s 9,000 Job Cuts: What This Means for Gamers

Major layoffs are hitting Microsoft, affecting its game developers across several studios, including Xbox. This comes even as the company’s executives claim more people are gaming than ever before.

Reports reveal that around 9,000 employees, or about 4% of Microsoft’s workforce, are impacted by these layoffs. This news was first shared by The Seattle Times, with cuts beginning Wednesday morning. The full extent of layoffs in the gaming division remains unclear.

A Microsoft spokesperson, Jeff Jones, mentioned the need for organizational changes. He emphasized that, while gaming is affected, it’s not the main focus of these layoffs. Employees from various teams and regions are feeling the impact.

Phil Spencer, CEO of Microsoft Gaming, communicated to staff that these changes aim to streamline management and boost effectiveness. He acknowledged the turmoil but assured them that the gaming sector has plenty of players, games, and gaming hours. Employees whose roles are cut are encouraged to apply for other positions within Microsoft, with priority given to their applications.

The changes also mean the cancellation of notable projects. The development of Perfect Dark by The Initiative has been scrapped, as reported by Windows Central. Another project in trouble is Everwild from Rare, which had been in development for over ten years. The project faced issues and was rebooted in 2021, but recent decisions have led to its cancellation.

Interestingly, Spencer had expressed enthusiasm for Everwild in a recent interview, highlighting the team’s progress. Just a few months ago, he was looking forward to its release.

Recent reports from Bloomberg indicate that the gaming sector faces additional cuts. The developer of The Elder Scrolls Online, ZeniMax, is also halting a new MMORPG project. Furthermore, around 200 employees at King, the maker of Candy Crush, are losing their jobs, along with layoffs at Raven Software, developers of the Call of Duty series.

This wave of layoffs has left many employees anxious about the future. Social media is buzzing with reactions, as gamers express their disappointment over canceled projects and the uncertainty surrounding Xbox’s next big steps. As Microsoft streamlines its operations, industry experts are watching closely to see how these changes will shape the future of gaming.

The road ahead for Microsoft’s gaming division is unclear, but it’s evident that the landscape of video game development is shifting dramatically.

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