Microsoft has just announced a major layoff affecting approximately 9,000 employees across multiple sectors, with the Xbox division facing significant reductions. This decision is expected to negatively influence the future viability of Xbox Game Pass, which has been pivotal in Microsoft’s gaming approach, akin to Netflix’s streaming model for movies.

For Xbox Game Pass to thrive, it’s crucial for Microsoft to maintain a continuous influx of new titles. To support this strategy, Microsoft has made substantial acquisitions to secure major game releases on launch day, like Starfield from Bethesda and the latest Call of Duty title. Furthermore, the company has invested in developing its own studio, The Initiative, while pushing existing studios to expand their game catalogs.

Despite this, the layoffs have sparked concern about the future of Xbox Game Pass. Key projects, including the reboot of Perfect Dark and Everwild, have been canceled, impacting consumer confidence in Microsoft’s ability to deliver on promises. The recent layoffs at industry giants, including studios involved in Call of Duty, further amplify these concerns, creating a volatile atmosphere around Xbox Game Pass’s sustainability in the coming years.

Cancelled Titles Post Layoffs

• Everwild
• Perfect Dark
• ZeniMax MMO

The ramifications of these layoffs could be dire for Microsoft, as the cancellation of projects raises doubts about Xbox’s long-term strategy, especially with a new console on the verge of release. This situation has left many fans apprehensive about the future of Xbox Game Pass.