Uploaded July 2026 | Updated September 2026, 1 week ago
Xbox’s latest cuts reveal far more than another round of layoffs. With 3,200 jobs gone and four studios released, Microsoft is narrowing Xbox around its biggest franchises, cheaper production and one final hardware bet.
We trace how far Game Pass fell short of Microsoft’s ambitions, which studios and projects no longer fit the plan, why experienced developers and critical platform knowledge were cut, and how much now rests on Project Helix.
Join us at https://bellular.games for early access content, 20 editions of 'Loading Screen' a month and to support our team!
00:00 Xbox Spread Itself Too Thin
00:43 Phil Spencer's Xbox
02:03 They Made The "Wrong" Kind Of Games
03:42 The Right Games, From The Wrong Studios
06:52 Sent Into The IP Mines
09:53 Surviving Projects
12:10 Project Helix
Sources:
fortune.com/2026/07/06/exclusive-xbox-ceo-asha-sharma-job-cuts-studios-axed-layoffs
https://x.com/DeekeTweak/status/2074481630492700780?s=20
wccftech.com/microsoft-may-exit-gaming-business-if-game-pass-subscribers-off-console-dont-increase-enough-by-2027
wsj.com/tech/microsoft-layoffs-xbox-59e7f6df
https://x.com/IOInteractive/status/2072005107797893315?s=20
https://x.com/IOInteractive/status/2074475151471571062?s=20
ign.com/articles/hideo-kojimas-xbox-horror-game-od-is-safe-from-microsofts-reset-plan-but-other-games-are-on-the-chopping-block
ign.com/articles/we-need-to-change-course-bethesda-boss-tells-staff-the-company-must-focus-on-our-strongest-franchises-as-xbox-layoffs-hit-hard
gamedeveloper.com/business/xbox-had-laid-off-379-zenimax-workers-in-maryland
gamedeveloper.com/business/report-around-half-of-the-id-software-team-have-been-laid-off
linkedin.com/posts/activity-7330861680190476289-vEQq
https://aftermath.site/microsoft-xbox-layoffs-blizzard-id-software-unions/
https://x.com/S1Braw/status/2074272467112108184?s=20
youtube.com/watch?v=DeUV3IqEZRU&t=463s
gamedeveloper.com/business/id-software-workers-form-wall-to-wall-union-in-response-to-mass-xbox-layoffs
gamesbeat.com/inside-a-studio-layoff-big-questions-for-microsofts-intentions-for-id-software
windowscentral.com/gaming/xbox/change-is-afoot-at-xboxs-arkane-studios-and-machinegames-with-machines-co-founder-taking-over-arkanes-operations
theinformation.com/articles/microsoft-considered-spinning-xbox-plans-new-halo-fallout-games
sensortower.com/blog/transmedia-opportunity-in-games
rollingstone.com/tv-movies/tv-movie-features/umbrella-academy-steve-blackman-abuse-allegations-1235047142
kotaku.com/avowed-the-outer-worlds-pentiment-studio-obsidian-xbox-layoffs-2000713032
bloomberg.com/news/articles/2026-07-08/microsoft-s-xbox-to-shift-obsidian-studio-to-new-fallout-video-game
reddit.com/r/ElderScrolls/comments/1s59o36/the_elder_scrolls_blades_to_shut_down_on_june_30
gamedeveloper.com/business/zenimax-staff-lambast-inhumane-xbox-layoffs-it-s-difficult-to-work-when-you-re-looking-at-a-graveyard-
forums.elderscrollsonline.com/en/discussion/695707/an-update-from-the-eso-team
news.xbox.com/en-us/2026/04/23/we-are-xbox
bloomberg.com/news/articles/2026-07-07/behind-xbox-s-big-layoffs-a-streaming-strategy-that-failed
https://x.com/DeekeTweak/status/2074488262224146566
https://x.com/moneyrumble/status/2074205662687773071?s=20
linkedin.com/feed/update/urn:li:activity:7480112628762161152
gamespot.com/articles/xbox-layoffs-heavily-impact-the-accessibility-team-too
https://x.com/idSoftware/status/2075638499412189455
https://aftermath.site/xbox-layoffs-id-software-frankfurt-doom/
Xbox’s latest cuts reveal far more than another round of layoffs. With 3,200 jobs gone and four studios released, Microsoft is narrowing Xbox around its biggest franchises, cheaper production and one final hardware bet.
We trace how far Game Pass fell short of Microsoft’s ambitions, which studios and projects no longer fit the plan, why experienced developers and critical platform knowledge were cut, and how much now rests on Project Helix.
Join us at https://bellular.games for early access content, 20 editions of 'Loading Screen' a month and to support our team!
00:00 Xbox Spread Itself Too Thin
00:43 Phil Spencer's Xbox
02:03 They Made The "Wrong" Kind Of Games
03:42 The Right Games, From The Wrong Studios
06:52 Sent Into The IP Mines
09:53 Surviving Projects
12:10 Project Helix
Sources:
fortune.com/2026/07/06/exclusive-xbox-ceo-asha-sharma-job-cuts-studios-axed-layoffs
https://x.com/DeekeTweak/status/2074481630492700780?s=20
wccftech.com/microsoft-may-exit-gaming-business-if-game-pass-subscribers-off-console-dont-increase-enough-by-2027
wsj.com/tech/microsoft-layoffs-xbox-59e7f6df
https://x.com/IOInteractive/status/2072005107797893315?s=20
https://x.com/IOInteractive/status/2074475151471571062?s=20
ign.com/articles/hideo-kojimas-xbox-horror-game-od-is-safe-from-microsofts-reset-plan-but-other-games-are-on-the-chopping-block
ign.com/articles/we-need-to-change-course-bethesda-boss-tells-staff-the-company-must-focus-on-our-strongest-franchises-as-xbox-layoffs-hit-hard
gamedeveloper.com/business/xbox-had-laid-off-379-zenimax-workers-in-maryland
gamedeveloper.com/business/report-around-half-of-the-id-software-team-have-been-laid-off
linkedin.com/posts/activity-7330861680190476289-vEQq
https://aftermath.site/microsoft-xbox-layoffs-blizzard-id-software-unions/
https://x.com/S1Braw/status/2074272467112108184?s=20
youtube.com/watch?v=DeUV3IqEZRU&t=463s
gamedeveloper.com/business/id-software-workers-form-wall-to-wall-union-in-response-to-mass-xbox-layoffs
gamesbeat.com/inside-a-studio-layoff-big-questions-for-microsofts-intentions-for-id-software
windowscentral.com/gaming/xbox/change-is-afoot-at-xboxs-arkane-studios-and-machinegames-with-machines-co-founder-taking-over-arkanes-operations
theinformation.com/articles/microsoft-considered-spinning-xbox-plans-new-halo-fallout-games
sensortower.com/blog/transmedia-opportunity-in-games
rollingstone.com/tv-movies/tv-movie-features/umbrella-academy-steve-blackman-abuse-allegations-1235047142
kotaku.com/avowed-the-outer-worlds-pentiment-studio-obsidian-xbox-layoffs-2000713032
bloomberg.com/news/articles/2026-07-08/microsoft-s-xbox-to-shift-obsidian-studio-to-new-fallout-video-game
reddit.com/r/ElderScrolls/comments/1s59o36/the_elder_scrolls_blades_to_shut_down_on_june_30
gamedeveloper.com/business/zenimax-staff-lambast-inhumane-xbox-layoffs-it-s-difficult-to-work-when-you-re-looking-at-a-graveyard-
forums.elderscrollsonline.com/en/discussion/695707/an-update-from-the-eso-team
news.xbox.com/en-us/2026/04/23/we-are-xbox
bloomberg.com/news/articles/2026-07-07/behind-xbox-s-big-layoffs-a-streaming-strategy-that-failed
https://x.com/DeekeTweak/status/2074488262224146566
https://x.com/moneyrumble/status/2074205662687773071?s=20
linkedin.com/feed/update/urn:li:activity:7480112628762161152
gamespot.com/articles/xbox-layoffs-heavily-impact-the-accessibility-team-too
https://x.com/idSoftware/status/2075638499412189455
https://aftermath.site/xbox-layoffs-id-software-frankfurt-doom/
