XBox Layoffs Rumours, Downtime, and Criticism From XBox Co-Founder

posted by Roy Schestowitz on Oct 10, 2025

Titanic moves

Rumours based on a real leak suggest XBox is about to have another massive round of layoffs (Microsoft-connected sites try to belittle this already [1]), maybe ahead of the so-called 'results' later this month. We now see strong words [2-4] from an XBox co-founder, saying that what Microsoft does is a "betrayal" and Xbox Live has meanwhile gone offline [5].

It's not the first time XBox services go dark, go offline. It hasn't been long since the last time.

So that's one heck of a pile of news for just one evening (last night).

XBox is in a chaotic state. Microsoft has no cards; it cannot reverse this trend. The sole comments in thelayoff.com put it some hours ago: "Who cares? With MS increasing their gaming prices and obviously moving toward an ad-riddled subscription model, everyone is ditching the xbox." █

Related/contextual items from the news:

1. Halo art director exits with ominous message — promises to share more “when it is absolutely safe"

   There are some odd happenings right now for the iconic Halo franchise, as a longtime art director has left developer Halo Studios with an ominous statement.

2. Xbox Co-Founder Calls Game Pass Price Hike A "Betrayal"

   Longtime Xbox devotees have recently seen several former exclusive games go to PlayStation 5, while Microsoft has raised prices on Game Pass and Xbox consoles in the US. Now, one of Xbox's original team members, Laura Fryer, is calling out her former employer and describing the price increases as a "betrayal" of the trust that gamers placed in them.

   "With this latest increase to Game Pass, Xbox threw away one of their last advantages," said Fryer in her latest YouTube video. "They were the best deal in gaming... With these price hikes, it feels like a betrayal, like greed over gaming... I recognize that this Xbox console generation isn't over yet, it's almost certainly going to be remembered first and foremost for Microsoft's greed."

3. Microsoft Game Studios Co-Founder Calls Out Game Pass Price Hikes: “Greed Over Gaming”

   One of the co-founders of Microsoft Game Studios – Laura Fryer – hasn’t pulled her punches when it has come to criticising some of the company’s decisions. In a new video, Fryer has taken to calling out Microsoft’s recent decision to raise the praise of Game Pass Ultimate, along with introducing new tiers tot he subscription service. In the video, which you can check out below, Fryer has said that the company threw away one of its advantages in favour of “greed over gaming”.

   Fryer spoke about the leadership of Microsoft making these decisions while not quite being in touch with the gaming market at large. This, she noted, as being one of the biggest challenges that Xbox is faced with today. “I’m not sure that their leadership understands what makes Xbox great,” she said. “I’m not sure that they’re listening to their fans. They keep doubling down on decisions that make it clear that they’ve been in a bubble, and all this feedback doesn’t seem to reach them any more.”

4. Xbox founding member: 'Microsoft may not understand what it's doing and is just trying things'

   Laura Fryer, original Xbox founder, suggests Microsoft's current Xbox struggles stem from experimental strategies amid layoffs, price hikes, and inconsistent decisions. This volatility risks damaging Xbox's brand, gamer trust, and talent recruitment. Rebuilding trust is crucial for Microsoft to sustain its $23 billion gaming business and regain market confidence.

   Laura Fryer, who helped launch the original Xbox console in 2001, shares insight on the current Xbox fiasco and indicates that Microsoft could just be experimenting to see what works.

5. Yes, Xbox Live is Down Right Now With Thousands Reporting Connectivity Issues Worldwide

   Xbox Live is currently down, with thousands reporting issues worldwide. Microsoft services like Teams, Outlook, and Azure are also affected.

   If you’re having trouble signing in to Xbox Live or playing your favorite games today, you’re definitely not alone. As of now, Xbox Live appears to be down, with thousands of players reporting major issues across Xbox services, and outage reports skyrocketing on Downdetector in just the past hour.

   According to the reports, the majority of the Xbox users are running into server connection problems, with some experiencing login issues too. The outage seems to have started around 11:55 AM PT today, and reports continue to climb rapidly, currently sitting at over 4,000 in total.