Yikes, Microsoft is laying off about 10k staff, majority Xbox. What a disaster.

I fear the MS SLT is destroying the Xbox unit by trying to make a brand rather than giving gamers great experiences.

https://www.theverge.com/news/693535/microsoft-layoffs-july-2025-xbox

Microsoft is laying off as many as 9,000 employees

Microsoft’s latest job cuts come after multiple rounds of layoffs over the past year.

The Verge

Lord, Microsoft cancelled Zenimax Online Studios new MMO - that they'd moved Elder Scrolls Online developers over to recently (hence why there's little ESO content from now on).

They've also locked the devs out of Slack without actually telling them they're fired, so they're finding out online.

@GossiTheDog Can't believe that Microsoft's game developers are using Slack, rather than the sweet SWEET mixture of Teams and Yammer (wait... is it not called that anymore??)
@GossiTheDog this is MS desperately trying to fund all the dev and infrastructure going into AI that no on wants and no one is buying, right?
@WiteWulf @GossiTheDog
😂😂😂😂👍👍👍
x1000!
@ChrisWarwick 😂 @WiteWulf @GossiTheDog 😂 😂😂😂😂😂😂😂😂😂😂😂😂😂
@WiteWulf @GossiTheDog it's quite scary and demoralising within MS right now 😟 I wonder what the cost ratio of FTE:Nvidia GPU is these days
@GossiTheDog Press Reset is a great read, dives into why crunch happens, studio shutdowns, churn in the game industry. Sad, but good read.
@GossiTheDog there are some amazing games that were 90% done and just got axed
@GossiTheDog it's not like humans actually do anything of value.../s
@GossiTheDog
Words can't express my disgust.
@GossiTheDog buying up a bunch of beloved developers and then firing them a few years later really sucks.
@GossiTheDog What a weird layoff email. "We're doing great, but you've got to go." I've been through layoffs before and they've always been of the "We have to make difficult decisions to weather tough times" sort. The tone in this one is jarring and dissonant. Kind of makes me wonder if it was written by AI.
@sethrichards @GossiTheDog pure greed and conjecture. "if we don't fire people now we won't be as successful as we're now in the future!". What an idiotic argument.
@sethrichards @GossiTheDog Or it's written by oligarchic sadists who, given the political climate in the US, don't have to hide their gleeful sadism anymore.
@sethrichards @GossiTheDog "There is more bonus for me if there are less of you"

@sethrichards @GossiTheDog

I read that as Phil Spencer saying:

Satya Nadella and Kevin Scott are complete fuckwits who don't understand that you keep growing by doing more of the thing that's actually driving revenue growth rather than throwing money at a buzzwordy money pit, but I'm not allowed to say that on the record.

But maybe I'm projecting.

@GossiTheDog I just look back to when so many were cheering on the ABK acquisition as if it were going to be a good thing (when it was the exact opposite).

@GossiTheDog Why did MS buy Bethesda and Activision again? I guess they just wanted to fasttrack "success" by buying their way to the top but even that goal seems hollow now that they've essentially given up on making Xbox truly competitive with Sony and Nintendo.

And it doesn't even seem like they're setting themselves up for long-term success by creating new franchises as evidenced by the several new franchises that were in the works at Bethesda and Activision until MS shut them down so they could focus on making the next COD with AI slop.

@GossiTheDog if they still release a device, it'll be a cloud focused one with Xbox Gamepass Ultimate or something...
@leberschnitzel @GossiTheDog They've had huge opportunity for several years to add a combo of cloud gaming and also 'S' style windows as a gaming mode on all their machines where you reboot into a locked down "no cheating" game mode and call it a game console. When they also had enough game brand under their control that could have been a huge business success but they've now missed the bus (thankfully).
@etchedpixels they just don't want to make a box anymore. That's why the release everything everywhere now and push hard for GamePass @GossiTheDog

@GossiTheDog this all sounds like MS is still amping up the "rent collection" portion of their business. It looks like they've accepted that they're done building a lot of new stuff. They need to sit around and get money without making new stuff for a while, to keep investors happy.

It's crummy for the workers involved. But I think we're going to see this with all of the big Tech firms for a couple more years.

@gatesvp @GossiTheDog Software writing is a bums on seats business (partly the industry's fault for not investing in proper tooling and process and automation). Americans are expensive and not special. Contract stuff moved long ago, most embedded stuff has because the fixed costs are usually split over a smaller unit count, big volume stuff has been dragged piece by piece that way (US managers, Indian devs, US senior managers, Indian managers, Indian devs etc - and many other countries too).
@GossiTheDog Xbox is dead. Sony and Nintendo are what remains.

@systemadminihater @GossiTheDog Sony is a dead man walking, Nintendo is a glorified mobile gaming company that hangs on because of its existing pool of characters and brand.

It's been inevitable for years IMHO. Any gaming conversation goes "Xbox games cost so much now", "Oh I'm on PC, I've got 300 games on steam I bought when they were going cheap I've yet to play"

Now whether the PC only game market is sustainable for big big titles remains to be seen.

@etchedpixels I use game pass for 90% of stuff and I think it's an asset and not a liability. I think Microsoft's issue with Xbox is an unforced error. They should have the best hardware. They do not currently.
@GossiTheDog you mean “the whole company” or at least the parts that aren’t the AI hype train
@GossiTheDog "HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws)" LOL if they are aligned with laws, they are not benefits, they are worker rights, they always forget about others' rights

@GossiTheDog Looks like they went all-in on slop and decided to cut humans to compensate and maintain its margins. Another needless, pointless loss of jobs for yet more utter garbage.

https://www.reuters.com/business/world-at-work/microsoft-lay-off-many-9000-employees-seattle-times-reports-2025-07-02/

@GossiTheDog dude.

Their email to employees says “I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger.”

So…“because we’re so successful, you’re all fired.” Did I get that right?

@markwyner @GossiTheDog

Getting wildly rich is never enough, so they 'optimize' their working force.

ZOS Update from Matt Firor

Hi everyone. After more than 18 years leading ZeniMax Online Studios, I'll be stepping away later this month.

Elder Scrolls Online
@GossiTheDog But what if they released Xbox Co-Pilot?
The King division is laying off 200 people (10%) ?? How hard is it to make a game like Candy Crush. I think I can come up with something like that after a long weekend partying.
@GossiTheDog they can’t get AI into Xbox.
@GossiTheDog let’s be honest, MSFT isn’t giving *anyone* great experiences these days, it is the single largest source of frustration in my workday