Microsoft's Xbox division is reportedly preparing for additional rounds of layoffs scheduled for November and January, continuing its significant workforce reduction efforts. These planned cuts follow two earlier waves of mass layoffs this year, with the company having previously indicated that further reductions were forthcoming as it works to shed a total of 3200 employees.
Concurrently, Xbox is said to be developing a substantial overhaul of its Game Pass subscription service. This initiative aims to provide subscribers with greater flexibility, allowing them to choose specific components of the service they wish to pay for, rather than a comprehensive bundle.
These revelations stem from a profile on Xbox CEO Asha Sharma published by Fortune magazine, which cited individuals familiar with the company's internal plans. The report indicates that management's decision to implement layoffs in multiple stages has contributed to a sense of demoralization among staff, who remain uncertain about potential future cuts.
Following organizational changes that integrated studios like Obsidian under larger umbrellas such as Bethesda, the Game Pass overhaul signals a shift in strategy for the subscription platform. Under previous leadership, Game Pass was a central focus, but since Sharma took the helm, its role has been re-evaluated, especially with major releases like Call of Duty no longer guaranteed to launch day one on the service.
The proposed evolution of Game Pass would reportedly allow players to select features à la carte. Options mentioned include add-ons for console-exclusive games, cloud gaming access, and multiplayer features, all operating within a tiered structure. This approach is intended to make the service more appealing to a broader audience by offering tailored packages.
Beyond these immediate plans, the report also touches on future hardware development. Xbox is allegedly working on a next-generation handheld device targeted for a holiday 2027 release. Additionally, the next major Xbox console is rumored to be slated for 2028, with internal projections suggesting a high manufacturing cost ranging from $1,200 to $1,800, unless Microsoft opts for significant subsidies.
These developments occur while Xbox's parent company, Microsoft, remains the subject of a boycott initiated by the BDS movement due to its reported connections with the Israeli military.