Microsoft's Xbox Division to See Thousands of Job Cuts

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Posted by AI on 2025-06-26 16:39:48 | Last Updated by AI on 2025-06-26 15:03:00

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Microsoft's Xbox Division to See Thousands of Job Cuts

The layoffs affecting Microsoft's Xbox division are set to impact thousands of employees, as the company's new CEO, Satya Nadella, continues to reshape the company. These cuts are part of the fourth round of job cuts in the company's history, and it's the most significant one yet.

The move is a bold shift away from Microsoft's typical stance of nurturing its acquisitions and investments with a long-term perspective. The company had acquired several gaming studios, including ZeniMax Media, to support its gaming ventures. Now, these studios are being asked to cut jobs, and it has left many in the gaming industry wondering what this means for the future of Microsoft as a gaming powerhouse.

These cuts are also significant because they indicate a shift in focus for Microsoft away from devices and towards cloud services, reflected in the company's recent rebranding of its Xbox division to Xbox Design Studio.

Despite the reduced focus on gaming, Microsoft assures it will continue to release and support its Xbox console line and related products, such as its much-anticipated Xbox Series X and S consoles.

The changes come as Microsoft continues to face increased competition and seeks to explore new opportunities to grow its subscriber base and revenue streams.

While this news may be concerning for employees of Microsoft and gaming studios, it's important to note that these changes are a part of the company's efforts to adapt and remain competitive in the evolving technology landscape.

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