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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Blizzard teased World of Warcraft: The Last Titan, the finale of the Worldsoul Saga, at BlizzCon 2026. More details will arrive early next year ahead of the 2027 release.
Diablo 4's Season of Hell's Legacy launches on September 15 with the return of Deckard Cain and the three Prime Evils to celebrate the franchise's 30th anniversary and Nintendo Switch 2 debut. The update adds nine permanent Legacy Uniques, Waking Nightmares encounters, and the Amazon class arriving in early 2027.
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