Microsoft Loses XBox Lawsuit, But There Are More

posted by Roy Schestowitz on Jul 20, 2026

3 days ago: Microsoft Has Just Been Sued Over Layoffs

According to Microsoft's own MSN, Microsoft lost a lawsuit [1] over access to a "digital game library" and there are also discussions about "Sony's decision to stop releasing PlayStation game discs" [2], which we mentioned earlier this month (Sony wants DRM, attestation, and rootkits everywhere).

This is the vision of computing those companies have:

I fear that the path of least resistance to accountability for FOSS will be the walled-garden-app-store model, where only cryptographically attested genuine kernels are able to offer the necessary age verification and other legal attestations required to surf the web, and only unmodified programs, downloaded from the FOSS-stewards-approved app store can run outside the sandbox of the browser.

And why would I even think that?

Its because a friend of more than 40 years recently needed my help to install Ubuntu on his new laptop, and as much as I appreciate what Ubuntu has done for the adoption of FOSS, I really hate how much that looked like the future.

Please make my predictions come out wrong.

This, not security, is also what 'secure boot' is all about is really about.

An associate of ours keep reminding us that XBox was more of a testbed for DRM and attestation - something that Microsoft now integrates into Vista 11 with TPMs, 'secure' boot', maybe rootkits as well.

The collapse of studios continues [3] - money down the drain as Microsoft borrowed a lot of money to take over Blizzard.

Finally, as it is also relevant, there's scepticism over excuses like slop being a catalyst of layoffs [4], based on how (or where) Microsoft advertises openings.

This unrest results in whistleblowers, who in turn cause further problems for Microsoft.

If everything goes down in a fiery mess - the DRM, the greed, the company that attacks GNU/Linux the most - society will be better off for it. █

Related/contextual items from the news:

1. Xbox gamer wins lawsuit against Microsoft, regains digital game library

   The court not only ordered Microsoft to restore Ordo_Liberal’s access to their purchased collection but also awarded compensatory damages of $400. The result marks a significant win for buyers, in addition to an obviously excellent piece of personal news for Ordo_Liberal, who can once again play their own games while also benefiting from some financial remuneration as well.

2. Many Xbox studio managers hate Game Pass, and Microsoft may stop adding games to the subscription on release - insider

   Recently, gamers drew attention to a new episode of the “Triple Click” podcast. Bloomberg journalist Jason Schreier took part in it.

   The participants discussed Sony's decision to stop releasing PlayStation game discs, as well as a new round of layoffs at Xbox. During the discussion, the topic of the Game Pass subscription was also touched upon.

3. Hearthstone Game Director Leaves Blizzard

   Recently, Microsoft (Xbox) had a new round of layoffs. Fans of the free-to-play CCG Hearthstone noticed that against this backdrop, the project's game director announced his departure.

4. H-1B: Inside Microsoft Layoffs and the Foreign Visa Loophole

   Microsoft has initiated another major workforce reduction, cutting nearly 4,800 employees as it begins its new financial year.

   The move coincides with a continued surge in high‑skilled visa filings, raising questions about how the company is reshaping its labor force while publicly insisting roles “are not being replaced by AI.” The cuts affect workers across commercial sales and Xbox, signaling broader structural changes that could accelerate Microsoft’s shift toward AI‑focused global hiring.