Bonum Certa Men Certa

New Data Shows Microsoft's XBox is Really Dying

posted by Roy Schestowitz on Aug 22, 2026

Hunt Valley Microsoft gaming employees outraged by mass layoffs

Some weeks ago many sites speculated that Microsoft would sell or offload XBox (or gaming/entertainment). Now, with Halo being transferred, some would be right to suspect that Microsoft is parcelling things for an "offloading" action, a much-needed action. But this is all speculation.

There is no "next XBox", there are just vapourware campaigns and fake 'leaks' no different from the ones we saw months ago. XBox used all sorts of teasers and mere words to "hint" at some new XBox, but nothing came out of that, nothing materialised. Then the mass layoffs hit.

Microsoft knows that if more people recognised that XBox is dead/dying, then sales of XBox would come to a standstill and studios would drop games' support for XBox.

So that's where XBox is right now.

XBox staff is livid because XBox layoffs didn't stop, they are still going on, even this month. Yesterday we saw this article: CWA Workers Rally Again as Xbox Layoffs Cut Deeper Into Studios

To quote:

CWA represents nearly 4,000 video game workers across Xbox's operations in the U.S. and Canada, spanning developers, artists, engineers, producers and support staff.

XBox won't last or be around for much longer. Based on this other report from yesterday, "Xbox physical sales plummet to only 4% market share," or 1 in 25.

...it seems physical Xbox sales have hit an all-time low. According to a recent report from analyst firm Circana, around 4% of all physical game sales this year have come from Xbox platforms. 4%!

That's nothing, this is miniscule, and they may fail to work due to downtimes, which became frequent.

XBox is a "burning platform".

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