Kevin LaChapelle, a long-serving Microsoft executive and a key figure in the development of Xbox's backwards compatibility feature, has been laid off as part of the company's broader restructuring. LaChapelle, who held the position of vice president of the Xbox platform, confirmed his departure from Microsoft after 37 years on LinkedIn. He began his tenure at Microsoft in 1989, eventually moving to Xbox during the Xbox 360 era.
During his time leading the team responsible for the Xbox One's backwards compatibility program, LaChapelle played a crucial role in bringing the highly praised feature to market. This initiative, unveiled at E3 2015, allowed players to enjoy a significant library of Xbox 360 titles on the Xbox One, a capability later extended to the Xbox Series X|S consoles. Recalling the E3 announcement, LaChapelle described the audience's reaction as "unbelievable."
The final update to the backwards compatibility catalog occurred in November 2021, adding over 70 original Xbox and Xbox 360 games. Following this, LaChapelle transitioned to lead the xCloud initiative, which evolved into Xbox Cloud Gaming. He guided the team from the project's inception through its launch and remains a proponent of game streaming, stating, "I am a firm believer that all entertainment will eventually be streamed to you wherever you are."
These workforce reductions are part of Microsoft's strategic adjustments, with reports suggesting that some initiatives, such as Xbox Game Pass, did not meet expectations, particularly in converting PC and cloud users. The 4,800 layoffs represent approximately 2.1% of Microsoft's global workforce. Within Xbox specifically, 1,600 employees were laid off this week, with an additional 1,600 anticipated in the coming year. Beyond personnel changes, Microsoft is also divesting or restructuring several studios, including Ninja Theory and Undead Labs, which have been sold, while Compulsion Games and Double Fine are regaining independence. Arkane Lyon is currently under consultation to determine its future and that of its in-development title, Marvel's Blade.