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'There has to be a better way than this': Game developers call Microsoft's latest layoffs 'a colossal waste of talent' from a publisher that seems like it's in 'a death spiral'
'There has to be a better way than this': Game developers call Microsoft's latest layoffs 'a colossal waste of talent' from a publisher that seems like it's in 'a death spiral'

Yahoo

time4 days ago

  • Entertainment
  • Yahoo

'There has to be a better way than this': Game developers call Microsoft's latest layoffs 'a colossal waste of talent' from a publisher that seems like it's in 'a death spiral'

When you buy through links on our articles, Future and its syndication partners may earn a commission. Yesterday, despite posting $26 billion in profits and outperforming Wall Street forecasts in the last quarter, Microsoft began its latest round of restructuring with a targeted goal of laying off 9,000 employees. Many of those cuts have affected the Xbox gaming division, leading to cancellations of projects like Rare's Everwild and an unannounced Zenimax MMO, and studio closures for teams like The Initiative, which had been developing the now-cancelled Perfect Dark reboot. Microsoft has now laid off over 20,000 people since the start of 2023. On social media, game developers from solo indies to triple-A studio staff and everything in between have shared their dismay over the continued turmoil affecting their peers and colleagues. "It's heartbreaking to watch what's happening to this industry that I love," said Eric Neustadter, former operations manager at Xbox Live and current VP of technology at The Pokémon Company. "The incentives are misaligned so strongly that fun games and profitable teams aren't what matter." BioWare veteran and current Skate narrative director John Epler said that he's "reeling" over the news that's continuing to break about further Microsoft cuts. "18 years in the industry and I can confidently say this is the grimmest shit has been yet," Epler said. "There has to be a better way than this," said Vlambeer co-founder Rami Ismail. "There has to be a better games industry than this happening to so many people, over and over and over. This isn't good enough." "The games industry is going to turn me into the joker," said award-nominated Civilization 7 and Marvel's Midnight Suns writer Emma Kidwell. Many devs see Microsoft's layoffs as emblematic of an industry trapped in a doomed pursuit of perpetual growth. "Laying off thousands of people so that your numbers look better for the quarter while making many more billions is such a f'd up reality," said Chandana Ekanayake, co-founder and creative director at Outerloop Games. "Making numbers go up forever is not sustainable and never was. What a colossal waste of talent." "When mass layoffs are just a quarterly event, is this not just a death spiral?" asked Bruno Dias, former lead narrative and systems designer on Fallen London, who notes that Xbox seems to be carving up its own publishing portfolio while it's seemingly moving away from hardware. "Xbox behaves like a company that's been sold to private equity and is having the copper stripped out of the walls." Andrew Carl, systems designer at Respawn, said the newest Microsoft cuts are particularly hard to stomach given the company's heavy investment into the "dumpster fire" of generative AI development. "Reminder that all this carnage at Microsoft is coming at the same time as they are financially doubling down on the agentic & generative AI slop that nobody wants because it lies to you, has terrible security issues, & has untenable energy costs," Carl said. Microsoft said in January that it intends to spend $80 billion on AI this year. Even Seamus Blackley, creator and designer of the original Xbox who left Microsoft in 2002, said that Xbox's current strategy—assuming there is one—is self-defeating. "Think of the number of great games that had troubled development histories. All of them?" Blackley said. "Now consider how often executives cancel troubled games. Smooth development comes only when you take no risks. Greatness comes only when great risks are braved. Do the math." When one of his followers joked that "the math is being done by Copilot," Blackley said "Then it will be wrong, and it will insist it's right." Elsewhere, Firaxis narrative director Cat Manning said what felt like a summation of the entire industry's exhaustion: "I just want to make things that get players excited, man."

Fresh from telling laid-off employees to console themselves with AI, Microsoft doubles down by advertising Xbox jobs with pathetic AI image: 'So tone deaf I hope it is satire'
Fresh from telling laid-off employees to console themselves with AI, Microsoft doubles down by advertising Xbox jobs with pathetic AI image: 'So tone deaf I hope it is satire'

Yahoo

time4 days ago

  • Entertainment
  • Yahoo

Fresh from telling laid-off employees to console themselves with AI, Microsoft doubles down by advertising Xbox jobs with pathetic AI image: 'So tone deaf I hope it is satire'

When you buy through links on our articles, Future and its syndication partners may earn a commission. The rollicking clown car that is Microsoft corporate leadership has outdone itself once again. Earlier this month Phil Spencer said Microsoft's gaming business has "never looked stronger" as he announced mass layoffs, which was swiftly followed up by an Xbox exec suggesting that affected employees use AI to console themselves. And now? A round of slow claps for Xbox's principle development lead Mike Matsel, another victim of terminal LinkedIn brain, who took to the social networking site this past weekend to announce some good news: we're hiring! Except… The post comes with an image that is clearly AI-generated (first spotted by Eurogamer). It shows a cartoon image of a woman smiling and wearing headphones in front of a PC: but look closer and you'll notice that this PC is very special, because the display is on the back of the monitor. Then you notice her eyes aren't on the front of the monitor either (I guess there's not much to see), and she's just staring gormlessly over the top and into the distance. The more you look the worse it gets: the shading on her top is all sorts of wrong; the keyboard just seems to have randomly shaped blocks rather than resembling a keyboard; there's a weird little divot between the thumb and index finger on the left hand. In other words, this is a classic AI-generated image, aka slop. The thing is, this is being posted by a senior figure at Xbox and is explicitly about hiring graphics designers. You'd think that might earn a bespoke visual for any hiring push. Tempting as it may be to dunk on Matsel, the guy also may be trying to keep his own job: Microsoft has said "AI is no longer optional" for its staff, and employees are being evaluated on how they use these tools. The first reply to the post is, appropriately enough, a poop emoji. "This is so tone deaf that I hope that it is satire," replies Kevin Catarino. "Does everyone left at Xbox have brain damage," wonders Rick Desilets. "Are you seriously posting a job ad for Xbox Graphics using this AI garbage? It looks like shit, man, what is happening over there?" "AI is a billion dollar industry, a lot of money and resources have been poured into this, and this is the result of it," says Joseph M. "My god, I don't believe in AI and I never will. It's not worth the hype or money. You could have just hired someone for cheap looking for help with their portfolio to do a much better job than this." Microsoft's latest cuts were a real bloodbath, with studios like The Initiative closed and several high-profile Xbox exclusives cancelled, including Rare's Everwild, an unannounced Zenimax MMO, and the excellent-looking Perfect Dark reboot. Since the start of 2023, Microsoft has fired over 20,000 people. It's also announced that it plans to spend $80 billion on AI this year. Well: I hope you all like hot garbage. Because right now, that's sure looking like the future of Xbox. Solve the daily Crossword

Xbox Game Pass adds Robocop Rogue City in latest drop filled with day one titles
Xbox Game Pass adds Robocop Rogue City in latest drop filled with day one titles

Daily Mirror

time4 days ago

  • Entertainment
  • Daily Mirror

Xbox Game Pass adds Robocop Rogue City in latest drop filled with day one titles

Xbox Game Pass is back with another wave of games, and while Microsoft is in the bad books of developers after its recent layoffs and game cancellations, it's trying to make things right with new day one releases. Xbox Game Pass is back with a fresh selection of games, and despite Microsoft's recent layoffs and game cancellations causing upset among players, it's attempting to make amends with new day one releases. ‌ While Xbox Game Pass has been performing well for consumers, the situation behind the scenes appears more challenging. Despite raking in millions, Xbox 's developers, who are responsible for producing the games and hardware that keep Microsoft's gaming division buoyant, have not been shown the respect they deserve. ‌ This lack of appreciation has resulted in several Xbox game cancellations and layoffs, pushing excellent projects and skilled developers out of the industry and consigning the major reboot of Perfect Dark to the scrapheap along with its creators. ‌ Despite the current climate within the company, Xbox Game Pass is providing players with plenty to occupy themselves, including the arrival of Tony Hawk's Pro Skater 3+4 in the first July Xbox Game Pass update. However, it's difficult to be truly excited about these offerings. Nevertheless, a new update is here, promising a host of new titles set to join the service, including a game that featured in the PS Plus Extra and Premium July 2025 drop. Here's everything you can play in the upcoming Xbox Game Pass July update. ‌ Introducing All Out Gaming Introducing All Out Gaming, a dedicated gaming brand providing the best gaming news, reviews, previews, interviews and more! Make sure you don't miss out on our latest high-quality videos on YouTube, TikTok, and Facebook, where we'll be posting our latest reviews, previews, interviews, and live streams! You can also subscribe to our free All Out Gaming newsletter service. Click here to be sent all the day's biggest stories. Xbox Game Pass July update two The latest Xbox blog post has revealed the games soon to be added to the Xbox Game Pass service: Xbox Game Pass Standard RoboCop: Rogue City (Xbox Series X |S, cloud, PC) – Thursday, July 17 Farming Simulator 25 (console, cloud, PC) – Friday, August 1 Xbox Game Pass Ultimate and PC While there aren't many surprises here, it's still an impressive line-up of titles for the month, particularly with the launch of Grounded 2 in its preview state. It's thrilling to see new Xbox offerings making their way to the market, especially given the premature end of several others. At least some original titles are emerging from Xbox HQ. Xbox Game Pass July update two games leaving Naturally, each update also brings a few losses in the gaming roster, but fortunately for players, this month's list of departing games is relatively small. Here's everything being removed from Xbox Game Pass on Thursday, 31 July: It's disappointing to bid farewell to Kunitsu-Gami after its debut as a Nintendo Switch 2 launch title, and it's always a pity to see Turnip Boy and his dreadful deeds depart, but thankfully only three games are leaving Xbox Game Pass on this date. We've certainly seen more significant exits in the past.

Microsoft layoffs leave 9,000 jobless - then Satya Nadella-led company boasts about saving $500 million
Microsoft layoffs leave 9,000 jobless - then Satya Nadella-led company boasts about saving $500 million

Time of India

time10-07-2025

  • Business
  • Time of India

Microsoft layoffs leave 9,000 jobless - then Satya Nadella-led company boasts about saving $500 million

Microsoft shares $500 million in AI savings just days after 9,000 layoffs — what does it really mean for workers- Microsoft is once again in the spotlight — but not for a product launch or a big tech deal. This time, it's because of something that feels like a double-edged sword: the company just revealed it saved over $500 million using AI tools, only a week after laying off more than 9,000 employees in its latest round of job cuts. The timing of these events has sparked criticism and raised serious questions about how AI is reshaping the workforce — and who benefits. During a presentation this week, Microsoft's Chief Commercial Officer Judson Althoff said the company's use of AI in customer service, sales, and software engineering has helped cut costs significantly — especially in its call center operations, where the company reportedly saved more than $500 million last year alone, according to Bloomberg. But for the thousands of workers who were laid off — roughly 15,000 jobs lost across three rounds this year — those savings may feel like salt in the wound. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Đường Phan Văn Hớn: Nhà tiền chế lắp đặt chỉ trong 1 ngày Prefabricated Homes Tìm hiểu thêm Undo Why did Microsoft announce $500 million in AI savings right after massive layoffs? The announcement from Judson Althoff came just days after Microsoft cut another 9,000 jobs, adding to previous rounds of layoffs this year. While the company didn't directly link the job cuts to AI, the message was clear: automation is delivering huge returns. This timing — celebrating massive cost savings while thousands of employees are being shown the door — didn't sit well with many. The remarks, made at an internal event, were meant to highlight productivity gains from AI, but outside the company, they raised eyebrows. Especially when Microsoft recently reported $26 billion in profit and $70 billion in revenue in its first quarter. Live Events When did Microsoft start the 2025 layoffs? Here's a quick timeline of Microsoft's major job cuts this year: January 2025 : Over 2,300 employees were laid off across various teams like LinkedIn, Azure, GitHub, Xbox, and core engineering functions. May 2025 : Microsoft slashed another 6,000 jobs in what it called a 'strategic rebalancing.' June 2025 : Around 305 positions were eliminated, mostly at Microsoft's Redmond headquarters. July 2, 2025 : The biggest cut yet—about 9,000 employees across divisions, including Xbox Game Studios and global sales. So far in 2025, the layoffs total about 15,000 jobs . Which Microsoft teams are getting hit the hardest? The job losses span a wide range of departments, but some areas are being downsized more aggressively than others: Xbox and gaming studios Big cuts hit Xbox Game Studios , affecting teams behind major titles like Halo , Perfect Dark , Everwild , and Forza . Some games were quietly canceled, and many developers were let go. Studios impacted include Turn 10, Compulsion Games, and Undead Labs. Sales and marketing Microsoft's customer-facing divisions are also seeing big reductions. Entire layers of sales and marketing teams have been cut as the company embraces AI to handle lead generation, customer support, and client outreach. Reports suggest even mid-level managers and experienced sales leaders have been shown the door. Engineering and product teams Over 40% of layoffs have affected engineers, software developers, product managers, and technical program managers. The company says it's flattening its org structure and automating more work internally using AI tools like Copilot . Middle management and HQ staff To streamline decision-making, Microsoft is eliminating several layers of management. Cuts also hit HQ operations and regional offices in Europe, Australia, and New Zealand , including around 800 roles at its Redmond campus. Are AI tools replacing real jobs at Microsoft? This is the big question. While Microsoft hasn't officially stated that the layoffs are directly tied to AI replacing human roles, it's hard to ignore the connection. AI is now being used extensively in sales support, customer interactions, and even software development. That means some tasks that used to require large teams are now being handled more efficiently by tools like Microsoft Copilot and ChatGPT. In fact, in a now-deleted LinkedIn post, Xbox Game Studios producer Matt Turnbull suggested that employees feeling 'overwhelmed' by layoffs could lean on AI tools like ChatGPT for emotional support and productivity. That comment only added to the perception that Microsoft might be using AI as a quiet replacement for human labor. How is Microsoft justifying layoffs during record-breaking profits? That's the part that has left many confused. Microsoft is currently more profitable than ever, with a market cap hovering around $3.74 trillion — just behind Nvidia and ahead of Apple. Despite that, the company is aggressively cutting jobs. Executives haven't provided a detailed explanation for the layoffs, but some experts suggest this could be part of a post-pandemic restructuring. Others believe it's a sign that tech companies are prioritizing AI investments over headcount. Indeed, Microsoft announced in January that it would spend $80 billion on AI infrastructure in 2025. This includes cloud computing, data centers, and hiring top AI researchers. As it stands, Microsoft seems more willing to invest in high-cost talent and systems for AI development than in retaining mid-level roles across its various departments. What does this mean for the future of tech jobs at Microsoft? It's a tough road ahead for workers. While Microsoft is still hiring — especially in AI-related roles — the shift suggests that the company is becoming more selective. Positions that don't directly contribute to AI development or cutting-edge engineering may continue to face pressure. As more companies follow Microsoft's lead in adopting AI tools, job security across the tech sector could become more fragile, especially for those in support, operations, and middle management roles. The new hiring focus appears to be less about scaling up teams and more about targeted recruitment of elite AI talent — the kind of researchers who can build the next big breakthrough, not necessarily those who manage day-to-day tasks. Should companies celebrate AI savings when thousands of jobs are being lost? That's the ethical question at the heart of this story. On one hand, AI is undeniably making businesses more efficient and profitable. On the other hand, using AI to cut costs — and then immediately laying off thousands of workers — can come off as cold, especially when profits are soaring. Microsoft's situation shows the growing tension between technological advancement and human employment. While AI is bringing massive gains, companies like Microsoft will need to manage not just their balance sheets, but also the public perception of how they treat employees during this AI-driven shift. Is AI progress worth the human cost? Microsoft's $500 million in AI-related savings is a clear sign of how fast automation is changing business. But the cost of that progress isn't just dollars — it's people. For the 15,000 employees let go this year, the numbers may not feel like success. They might feel like loss. As AI becomes more powerful, stories like Microsoft's are likely to become more common. And with that, the debate over how companies balance profit, people, and progress will only grow louder. FAQs: Q1: Why did Microsoft lay off 9,000 workers after saving $500 million through AI? To cut costs and focus more on AI development and infrastructure growth. Q2: Is Microsoft replacing jobs with AI tools like Copilot and ChatGPT? Microsoft is using AI to boost productivity, which may reduce the need for some roles.

'At some point reality has to hit,' says ex-Arkane founder Raphael Colantonio on Game Pass — 'this model just doesn't work long-term'
'At some point reality has to hit,' says ex-Arkane founder Raphael Colantonio on Game Pass — 'this model just doesn't work long-term'

Time of India

time07-07-2025

  • Business
  • Time of India

'At some point reality has to hit,' says ex-Arkane founder Raphael Colantonio on Game Pass — 'this model just doesn't work long-term'

(Image via @saudigamer's 'X' Account) Raphael Colantonio, ex-Arkane Studios founder, has recently delivered a stark assessment of Xbox Game Pass. He suggested that the gaming giant's flagship subscription model harbors fundamental laws. His comments amidst the recent project cancellations and Microsoft layoffs point to long-term viability concerns that can reshape the industry landscape. He even hinted at the inevitable reckoning of the approach that's been championed by Microsoft. Raphael Colantonio issues stark warnings The ex-Arkane Studios founder didn't mince his words on Xbox Game Pass. He straightaway labelled it as an 'unsustainable model' that has been actively damaging the industry. As per his argument, this damage has been masked for many years by Microsoft's vast financial resources. He called it their 'infinite money' that's subsidizing it all and artificially propping up the service, but economics is not adding up for most publishers and developers. Making some bleak core predictions, he said, coexistence with the traditional sales models for Xbox Game Pass is impossible. As he contends, Game Pass faces a binary future. It would either dominate to the point of eliminating all competitors, or Microsoft would be forced to abandon it entirely. In his words, " At some point reality has to hit." Colantonio's comments put a lot of emphasis on the inherent long-term weakness of this model and show increased skepticism from the industry veterans. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 새로 나온 '실비보험', 합리적인 가격과 실속있는 보장으로 최적가 비교가입!... 굿리치 [등록번호:제2006038313호] 가입하기 Undo These veterans believe the subscription services can devalue games or destabilize the development budgets. Job cuts and corporate pressures create a ripple effect Colantonio's critique has emerged amidst the significant turmoil in Microsoft's gaming division. The recent months saw deeper cuts, including some high-profile project cancellations. Rare's Everwild and Initiative's 'Perfect Dark' reboot, apart from studio closures, as per him, these actions were not isolated incidents. Journalists Tom Warren and Jez Corden have reported that these stemmed from intense financial pressure. As per reports, Microsoft's CFO Amy Hood recently set some aggressive and potentially unrealistic targets for Xbox. As noted, the pressure intensified quite significantly, following Activision Blizzard's massive acquisition. The sheer cost of the deal, together with Game Pass investments trying to be profitable, has created a challenging new financial reality. Further compounding the struggles of Xbox is Microsoft's strategic pivot. $80 billion, a very significant resource, has been redirected to generative AI, a priority that's been championed by CEO Satya Nadella and Hood. Such a shift within investment focus, completely away from gaming, has further squeezed the operating environment of Xbox, putting it in a precarious position, with further turbulence expected ahead. Gaming Industry concerns for Xbox Game Pass are rising Colantonio is not alone with his skepticism. Even Michael Douse, the Publishing Director at Baldur's Gate 3 developer Larian Studios, has echoed the concern about sustainability. He did highlight a widespread industry question— "What happens when all that money runs out?" The fear now deters many publishers from completely embracing the model of Game Pass. Both Colantonio and Douse are seeing a potential compromise being made. As per their suggestion, subscription services can find a sustainable niche, keeping the primary focus on back catalogue titles, which are older games that are beyond the initial sales peak. As per their argument, launching major new releases on day one of subscription undercuts traditional sales. It creates unsustainable economics for most publishers and developers not named Microsoft. Can Xbox Game Pass survive without hurting the industry? Future of Xbox Game Pass now remains a pivotal question. As Microsoft continues to balance colossal investments, shifting AI focus and corporate expectations, the viability of the subscription cornerstone does face its sternest test. The warning of Colantonio for now serves as a potent reminder that even all that infinite money cannot defy economic reality forever. Despite all warnings, Microsoft is pushing Game Pass, banking upon subscriber growth. Yet, with no clear path to profitability and high skepticism from industry, subscription gaming's future remains uncertain. To wrap up, Colantonio's critique puts forward an important question: Is Xbox Game Pass sustainable?, or is it a bubble that has been waiting to burst?' With Microsoft trying to navigate financial pressures and has been facing a lot of industry backlash, the next few years ahead could determine whether subscription gaming will collapse under its own weight or thrive. Game On Season 1 continues with Mirabai Chanu's inspiring story. Watch Episode 2 here.

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