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The Verge September 24, 2026 neutral

The Xbox reset gets ugly

MicrosoftAI / LLM
<figure> <img alt="Vector collage of the Xbox logo." data-caption="" data-portal-copyright="Image: The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/25485118/STK048_XBOX2__C.png?quality=90&#038;strip=all&#038;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="wp-block-paragraph">It feels like Xbox has been in a permanent state of turmoil for at least two years now, and this week is no different. Microsoft <a href="https://www.theverge.com/news/998589/microsoft-xbox-layoffs-ninja-theory-closure">cut 268 jobs</a> across its gaming division this week, <a href="https://www.theverge.com/news/998586/activision-halo-xbox-reorganization-layoffs">shuffled major studios</a> and franchises around, and continued its Xbox "reset." </p> <p class="wp-block-paragraph">Layoffs have become a way of life for Xbox employees, after Microsoft <a href="https://www.theverge.com/2024/1/25/24049050/microsoft-activision-blizzard-layoffs">started cutting thousands</a> in early 2024 and hasn't slowed down. The turmoil was particularly apparent when Microsoft <a href="https://www.theverge.com/2024/5/8/24151814/microsoft-xbox-layoffs-strategy-changes-arkane-tango">started shutting down game studios</a>, and the painful layoffs have had a lasting impact on morale, according to current and former Xbox employees I've been speaking to this week.</p> <p class="wp-block-paragraph">At the same time, Xbox h …</p> <p><a href="https://www.theverge.com/tech/999919/microsoft-xbox-reorganization-activision-notepad">Read the full story at The Verge.</a></p>
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