Frustration is mounting among Xbox fans regarding the ongoing cycle of layoffs and studio closures within Microsoft's gaming division. A post on the newly launched Player Voice Portal has gained significant traction, with over 3,000 upvotes, calling for an end to these practices.
The top-trending post highlights the recent layoff of approximately 3,200 workers across various Xbox studios, including Activision, Bethesda, Blizzard, King, Mojang, Obsidian, id Software, and Xbox Game Studios. The author contends that this represents a continuation of a pattern that has resulted in over 10,000 layoffs at Xbox within the past two years. The post also lists multiple studios whose futures have been jeopardized or which have been closed entirely, such as Compulsion Games, Double Fine, Undead Labs, Ninja Theory, Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Studios, alongside numerous game cancellations.
User Witt Yao, who authored the post, has outlined several demands aimed at aligning corporate actions with the needs of the Xbox community. These include a moratorium on layoffs for the next two years and an end to studio closures, arguing that such actions harm the fanbases of affected studios. The post suggests that Xbox should not be constrained by unrealistic profit expectations, especially given its existing profitability, and calls for a renegotiation of its corporate reset.
Furthermore, the user advocates for greater trust in developers, including good-faith negotiations with unions, to better represent the interests of both creators and players. The post frames layoffs as a failure of leadership, stating there should be no executive bonuses when job cuts occur. Finally, it proposes increased investment in the future of gaming and its developers, rather than in technologies like AI that may not align with player desires, emphasizing that development expertise is a company's greatest asset.
This sentiment is amplified by the recent events where studios like Ninja Theory and Undead Labs, developers of games showcased at Xbox's summer showcase, were reportedly spun off weeks later. While the exact compensation for Xbox leadership remains private, Microsoft CEO Satya Nadella's total compensation for the 2025 fiscal year reportedly rose to $96 million. Xbox CEO Asha Sharma has described the current restructuring as a necessary correction after overextension during the Game Pass era. However, significant layoffs have become a recurring issue, with around 1,900 staff cut in early 2024, an additional 650 later that year, and more in July 2025. An additional 1,600 staff are reportedly facing cuts over the next twelve months.
Players have voiced strong agreement with the notion that layoffs signify leadership failures. Comments on the portal suggest that when talented developers cannot be leveraged effectively for profit, the deficit lies with management. Some users have expressed deep dissatisfaction, with one commenter stating they would not renew their Game Pass subscription due to the impact on employees and the gaming industry.