Microsoft is planning major layoffs in its Xbox gaming business as early as next week after its fiscal year ends on June 30. The cuts mark the fourth big round in 18 months as the division faces pressure to improve margins following the $69 billion Activision Blizzard acquisition.
The layoffs come shortly after new Xbox CEO Asha Sharma admitted the business "isn't particularly healthy."
Sharma emphasized that annual revenue had declined nearly half a billion over the last five years despite more than $20 million in investment.
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Tomb Raider: Catalyst has been pushed from a 2027 target to 2028 according to Amazon Gaming chief Jeffrey Gattis, while Legacy of Atlantis stays on schedule for February 12, 2027. The shift comes amid four rounds of layoffs at developer Crystal Dynamics in the past 12 months, raising questions about studio capacity.
The European Union has approved the $55bn acquisition of Electronic Arts by Saudi Arabia's Public Investment Fund (PIF) along with Silver Lake and Affinity Partners. The leveraged buyout, if completed, would become the largest in history and has drawn criticism over sportswashing concerns.
Xbox Backward Compatibility has launched on PC in early release, bringing four original titles to computers and handhelds for the first time with new graphics features, license carryover, and Achievements planned later this year.
