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Splitgate 2 studio lays off “small group” of developers, while its co-founders aren’t taking salaries “as we lock in to deliver the next phase” of the troubled FPS
“Pick your lane and stick to it”: Former Blizzard president says it’s “tough to see Xbox confused” amid “this is an Xbox” branding: “They have to figure out what needs to change… and fast”
Replaced Embracer CEO wins understatement of the year, says “the road has not always been straight” after billions burned, thousands of layoffs, dozens of games canceled, and multiple studios closed
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Microsoft orders more Xbox layoffs, boss Phil Spencer tells staff “our platform, hardware, and game roadmap have never looked stronger” but the fourth big round of layoffs in 18 months is coming anyway
Catherine Lewis
2 July 2025
The exact number of staff affected isn’t currently clear
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(Image credit: Xbox)
Microsoft’s gaming division has begun a new round of mass layoffs, despite Xbox boss Phil Spencer saying that the company’s “platform, hardware, and game roadmap have never looked stronger.”
Whispers of upcoming job cuts were reported by Bloomberg last week, which now writes that employees are being informed today of the plans. Candy Crush developer King is cutting around 200 jobs, affecting roughly 10% of its staff, according to the site’s sources. The exact number of layoffs across other offices, such as in the US and the rest of Europe, isn’t currently clear.
Bloomberg also shares an email that was sent to staff by Microsoft Gaming CEO Phil Spencer (posted in full by The Verge), who acknowledges that “these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger.”
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Splitgate 2 studio lays off “small group” of developers, while its co-founders aren’t taking salaries “as we lock in to deliver the next phase” of the troubled FPS
“Pick your lane and stick to it”: Former Blizzard president says it’s “tough to see Xbox confused” amid “this is an Xbox” branding: “They have to figure out what needs to change… and fast”
Replaced Embracer CEO wins understatement of the year, says “the road has not always been straight” after billions burned, thousands of layoffs, dozens of games canceled, and multiple studios closed
However, he adds that “the success we’re seeing currently is based on tough decisions we’ve made previously,” and insists that “we must make choices now for continued success in future years, and a key part of that strategy is the discipline to prioritize the strongest opportunities.
“We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business,” Spencer continues. “This focused approach means we can deliver exceptional games and experiences for players for generations to come.”
Spencer adds that “we would not be where we are today without the time, energy, and creativity of those whose roles are impacted,” and says those affected are “encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.”
However, as Bloomberg points out, the situation feels particularly dire, given that this is the fourth round of layoffs since January 2024, when almost 2,000 people lost their jobs. After that, there was the closure of studios, including Arkane Austin and Tango Gameworks (the latter of which was later revived by Krafton), followed by the layoff of another 650 people a few months later.
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The full situation still appears to be unfolding, with more details emerging gradually, as it’s also been reported that Everwild, an action-adventure from Rare, has been canceled amidst the layoffs.
“Pick your lane and stick to it”: Former Blizzard president says it’s “tough to see Xbox confused” amid “this is an Xbox” branding: “They have to figure out what needs to change… and fast.”
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Catherine Lewis
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Deputy News Editor
I’m GamesRadar+’s Deputy News Editor, working alongside the rest of the news team to deliver cool gaming stories that we love. After spending more hours than I can count filling The University of Sheffield’s student newspaper with Pokemon and indie game content, and picking up a degree in Journalism Studies, I started my career at GAMINGbible where I worked as a journalist for over a year and a half. I then became TechRadar Gaming’s news writer, where I sourced stories and wrote about all sorts of intriguing topics. In my spare time, you’re sure to find me on my Nintendo Switch or PS5 playing through story-driven RPGs like Xenoblade Chronicles and Persona 5 Royal, nuzlocking old Pokemon games, or going for a Victory Royale in Fortnite.
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Splitgate 2 studio lays off “small group” of developers, while its co-founders aren’t taking salaries “as we lock in to deliver the next phase” of the troubled FPS
“Pick your lane and stick to it”: Former Blizzard president says it’s “tough to see Xbox confused” amid “this is an Xbox” branding: “They have to figure out what needs to change… and fast”
Replaced Embracer CEO wins understatement of the year, says “the road has not always been straight” after billions burned, thousands of layoffs, dozens of games canceled, and multiple studios closed
EA reportedly lays off “between 300 and 400” people, cancels Titanfall extraction shooter: “We’ve made select changes within our organization […] in service of driving future growth”
Xbox Game Studios list: Every studio Microsoft owns and what they are developing
Days Gone studio Sony Bend reportedly lays off 30% of its staff as it works on new game following live service cancelation
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