The Daily Populous Sunday July 19th, 2026 morning edition
Authored by gameobserver.com and submitted by Darth_Vaper883

Several Xbox studio employees are criticizing Microsoft after another major round of layoffs, with one saying there is “no benefit to being owned by Microsoft.” The latest cuts have left many developers frustrated, with workers arguing that even making successful games is no longer enough to keep their jobs.

A new report from Game Developer shows that many Xbox studio employees are upset after what the company called an “Xbox Reset” led by new Xbox CEO Asha Sharma. The report says the latest layoffs have created fear across teams, with many developers feeling they are treated as replaceable workers instead of the people behind Xbox’s most successful games.

The latest restructuring affected several Xbox studios, including Id Software, ZeniMax Online, and Bethesda. Around 136 of Id Software’s 185 developers reportedly lost their jobs, even though the studio recently released the well-received DOOM: The Dark Ages – Revelations DLC. Developers say even if a game performs well, there is no guarantee you’ll keep your job. The report says Microsoft made the layoffs before seeing how some of its latest projects would perform.

An anonymous former developer said, “They didn’t even wait to see if the product was successful before they got rid of the team. There are no benefits to being owned by Microsoft. In fact, they have destroyed immense amounts of value that I don’t even think that they’re aware of.” Another major complaint is what employees describe as a “disposable worker” culture. According to developers, Microsoft now treats staff as numbers rather than people, with little reward for spending years creating games that become part of the Xbox Game Pass subscription service instead of relying on individual game sales.

While Microsoft says the layoffs are part of its effort to improve Xbox’s business, many believe the cuts will hurt the company’s studios and make it harder to develop future games. It remains to be seen whether these changes will have the results the company is hoping for.

brakudo on July 18th, 2026 at 16:42 UTC »

No benefit other then some studios taking over half a decade or more to make a game and still getting a pay check. We will see how that works for studios that are now independent. I bet they pick up the pace

Krabic on July 18th, 2026 at 15:53 UTC »

Not even a free excel?

Nick_Gaugh_69 on July 18th, 2026 at 14:42 UTC »

Xbox bought them for the IP, much like a spoiled Victorian child walking through a market and saying “Mommy, I want that one!”