Bonum Certa Men Certa

More Layoffs, Shutdowns Connected to Microsoft's XBox and Gaming Failure

posted by Roy Schestowitz on Nov 20, 2025

3 days ago: Gaming Journalist and Guru Jason Schreier Says Microsoft is Indeed Behaving Like It Exits the Console Market

Little by little, whatever is left of XBox will fall apart, just like the mega acquisition that sank Microsoft into massive debt (just to keep up appearances).

This morning we see a report about a studio in England [1]; it "Closes Liverpool Studio And Lays Off Workers" and it's because of a decision made by Microsoft.

Expect to hear lots more of the same in months to come. There's no "going back" for XBox because sales flounder [1, 2] and Playstation "won".

PS5 vs Xbox Series X|S Sales Comparison - April 2025 - Sales

This was half a year ago. Media reports have since then stated that XBox sales are collapsing some more. Sony's Playstation is already declared a "winner" in many articles.

Related/contextual items from the news:

  1. Just Cause Dev Avalanche Closes Liverpool Studio And Lays Off Workers

    In August, reports emerged that Microsoft had paused development on Contraband, a co-op smuggler game from Just Cause developer Avalanche. At the time, some sources noted that Microsoft put a "hold" on production rather than a full cancellation. But now, Contraband's fate appears to be sealed as mass layoffs at Avalanche have resulted in the closure of its Liverpool studio.

    Avalanche announced the news on its official site, and disclosed that it means 31 developers are losing their jobs. Per United Kingdom labor laws, Avalanche initiated "a collective consultation process" in September before moving ahead with the layoffs and closing the studio. However, the rest of the company remains intact.

    [...]

    A recent report suggested that Microsoft's struggles to find its footing may be due to sky-high profit goals that have resulted in multiple waves of layoffs at the company.

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