You’ve probably seen reports about people leaving Xbox, and it appears the situation is more serious internally than we first thought.
A new video from Bloomberg reporter Jason Schreier reveals that several game studios—not just Ninja Theory, Double Fine, and Compulsion Games—are facing difficulties. These three studios, all of which have previously developed games for the PlayStation 5, are currently in talks to secure their survival.
The reporter says even more jobs are likely to be cut, and the organization as a whole is facing major layoffs.
Talks with those impacted involve either making studios operate independently or selling them to new owners. However, journalist Jason Schreier predicts significant layoffs and studio closures will happen within the next two weeks.
He explained:
Things are about to get very difficult, and I’ve heard people familiar with the situation describe it as a complete disaster. The recent issues with those studios are just the first sign of a much larger problem, and there are a lot of discussions happening right now to try and address it.
Microsoft’s fiscal year closes on June 30th, so it might be a while before we have a complete understanding of their performance.
In his insightful video (linked above), Schreier explores the mistakes that have impacted Xbox. A key issue seems to be aggressively buying game developers without successfully expanding Game Pass to match, which has created difficulties for the company.
The $69 billion acquisition of Activision Blizzard was already a huge expense, but it also instantly increased Microsoft’s workforce by thousands. This happened while Microsoft was heavily investing in artificial intelligence, creating significant financial strain.
Schreier often describes the situation as a “mess,” and honestly, it seems like one when you look at it from an outsider’s perspective.
Now that several game developers who used to work exclusively for Xbox are also creating games for PlayStation 5, Sony is expected to face significant setbacks, potentially leading to the cancellation of numerous projects and the loss of popular development teams.
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2026-06-17 21:37