Xbox’s big budget cuts from July might have claimed another victim.
Last month, Microsoft reduced its workforce by approximately 9,000 employees, including many from its Xbox division. This downsizing is believed to be related to the investment in artificial intelligence projects and adjustments in staffing.
In summary, numerous Xbox projects have either ceased activity or their futures are uncertain recently. Microsoft has cancelled Perfect Dark and closed down The Initiative studio. Social media channels for Forza Motorsport are inactive, and there’s been uncertainty about other projects like Contraband, although the team there is still hiring. It appears that another Xbox product might be affected by budget cuts as well.
It appears that Tom “Wozza” Warren from The Verge pointed out yesterday that the Xbox Gear Store is currently inaccessible.
The Xbox Brand Store served (or serves) as a marketplace for Xbox enthusiasts to acquire officially branded Xbox merchandise, showcasing both Xbox and Microsoft’s diverse gaming catalogues. Items ranging from the iconic Xbox refrigerator to t-shirts, socks, and assorted trinkets were available for purchase there.
Mr. Warren pointed out that the Xbox Design Lab, where you can purchase customized Xbox and Xbox Elite controllers, has been inactive since December of last year. As per information on their website, the Xbox Design Lab is currently offline due to Microsoft switching “payment systems,” but it seems unusual for this process to take over six months.
Upon revisiting the Xbox Design Lab, I found that the splash screen has undergone a change recently. However, I’m unsure of exactly when this update was implemented. Previously, my inquiries about the Xbox Design Lab to Microsoft resulted in no response.
It seems odd that Microsoft would display “coming soon” splash screens for features they intend to discontinue, as it generates anticipation. However, let’s face it, Microsoft isn’t always great at managing expectations. To put it simply, when Microsoft showcases gameplay of Perfect Dark and then cancels the game, it teaches fans not to trust Microsoft’s promises until the product is actually released.
It’s plausible to infer that Microsoft is working on fresh controller designs with the Xbox Design Lab. As I mentioned earlier, Microsoft intends to launch several new controllers for the next-gen consoles, and some of these may hit the market sooner. The upcoming models will feature Wi-Fi connectivity to minimize cloud latency, along with Bluetooth and traditional Xbox Wireless signals. They’ll also boast improved toggle mechanisms for seamlessly switching devices and are expected to roll out with additional new improvements and features. However, it seems Microsoft may have misled people by stating that the Xbox Design Lab was shutting down “to switch payment processors” in this context.
Regarding the Xbox Gear Store, Microsoft now manages multiple retail outlets following its acquisition of Bethesda and Blizzard. The stores from both companies are quite successful, and they already have distribution centers worldwide to support global supply chains.
Is there a possibility that Microsoft could unify its merchandising activities across all its brands? This move might prove to be more economical and beneficial as well, since customers shopping one brand may discover other related products they’re interested in from different franchises. Currently, it appears that Bethesda, Blizzard, and Xbox have separate third-party companies handling their respective stores independently.
It’s possible that the Xbox Gear Shop issue will resolve itself within a few hours after this post goes live, or it might simply turn out to be nothing significant at all. I’ve reached out to Microsoft for clarification on the matter, but please note that they may not respond immediately. Fingers crossed that this downtime doesn’t last as long as the Xbox Design Lab has been offline…
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2025-08-06 15:11