Microsoft is undergoing significant restructuring in its gaming division, leading to the layoff of approximately 300 jobs in Washington and around 450 employees globally. This follows a major workforce reduction earlier this summer, where the company eliminated nearly 4,800 roles, including 605 in Washington. The latest cuts primarily affect Xbox Game Studios, including management and roles within iconic franchises like Halo.
In total, Microsoft plans to reduce its Xbox workforce by about 20% by the end of its fiscal year. These layoffs come amidst efforts to adjust operations in response to changes within the technology sector, as well as the impact of AI. While some layoffs were attributed to AI’s influence on business processes, Microsoft clarified that these specific roles are not being directly replaced by AI.
Concurrently, Microsoft has raised the prices of its Xbox consoles, citing global supply chain challenges and increased production costs. Xbox prices have seen substantial increases, with the lowest model now retailing at $500. Despite the layoffs and price hikes, Microsoft is also planning to release a new console, dubbed Project Helix, in 2027.
