Evidence Contradicting Microsoft's Non-Denying Denials and Expectation of Many Layoffs Soon

posted by Roy Schestowitz on Oct 06, 2025,
updated Oct 06, 2025

The "games" (or gaming) "industry" is clearly not growing [1] in these tough market conditions. Entertainment is a luxury and Microsoft counts the losses or licks its wounds [2]. XBox is a losing business - it loses money and adds up/contributes to Microsoft's already massive debt.

There are still reports about another massive wave of XBox layoffs [3], based on credible leaks that Microsoft isn't able to deny, and many shops quit stocking XBox [4] - a story we already saw circulating 12 months ago. Microsoft could not deny that back then, either.

In its non-denying denial Microsoft points to some AMD vapourware, but this too seems to have been shot down [5], so something isn't right. As the Seattle press put is some hours ago [6], "Microsoft has had this constant drip of layoffs for months."

Later this month, just before so-called 'results', expect many more Microsoft layoffs, i.e. the usual. █

Related/contextual items from the news:

1. Metal: Hellsinger studio The Outsiders is closing as part of Funcom's post-Dune: Awakening layoffs

2. Microsoft reportedly estimated that Game Pass led to $300 million in lost sales of Black Ops 6, with 82% of copies sold being on the Game Pass-less PlayStation 5

   A new Bloomberg report based on interviews with former Microsoft employees has offered more fuel for speculation about the continued viability of Game Pass, including Microsoft's own alleged estimate for how much sales revenue Call of Duty: Black Ops 6 lost by being on the subscription service.

3. Xbox Prepares for New Mass Layoffs: Fifth Wave in Two Years, Insider Says

   According to SneakersSO’s insider, Xbox is expected to undergo another round of layoffs in the first quarter of 2026 — a reduction said to be similar in scale to the cuts that occurred this past summer. If true, this would mark the fifth wave of job losses over the last two years.

4. Rumors Mount That Microsoft Will Exit Xbox Console Business as Retailers Halt Sales

   The most eye-catching development is word that plans to launch a new Xbox console have become uncertain. MS had publicly stated it would release new hardware in 2026, but the essential preparatory steps required for a console launch are reportedly not proceeding as they should.

5. Xbox Handheld Reportedly Cancelled as Microsoft Refuses AMD’s 10M Unit Commitment

   Well-known hardware insider KeplerL2 claims that Microsoft has scrapped its plans for an in-house Xbox handheld. The device was reportedly cancelled after AMD demanded a 10 million unit commitment to justify a custom SoC, something Microsoft wasn’t willing to risk.

   The long-rumoured Xbox handheld may have been cancelled before it ever reached production. According to well-known hardware insider KeplerL2, Microsoft scrapped its in-house handheld project after AMD required a commitment of 10 million+ units to justify developing a dedicated SoC (System-on-a-Chip).

6. Harger: Economist says Washington is already in a recession

   The warning signs are everywhere. Microsoft has had this constant drip of layoffs for months.