It feels like Xbox has been in a permanent state of turmoil for at least two years now, and this week is no different. Microsoft cut 268 jobs across its gaming division this week, shuffled major studios and franchises around, and continued its Xbox "reset."
Layoffs have become a way of life for Xbox employees, after Microsoft started cutting thousands in early 2024 and hasn't slowed down. The turmoil was particularly apparent when Microsoft started shutting down game studios, and the painful layoffs have had a lasting impact on morale, according to current and former Xbox employees I've been speaking to this week.
At the same time, Xbox h …
