Game Devs Slam Microsoft Layoffs as ‘Colossal Waste of Talent’
▼ Summary
– Microsoft announced layoffs of 9,000 employees, including cuts in the Xbox division, despite posting $26 billion in profits and exceeding Wall Street forecasts.
– Industry professionals, including former Xbox employees and game developers, expressed dismay over the layoffs, calling them unsustainable and harmful to talent.
– Critics argue that Microsoft’s focus on short-term profits and AI investments, like its $80 billion AI spending plan, contrasts with its layoffs and project cancellations.
– Some developers, like Seamus Blackley (original Xbox creator), criticized Microsoft’s risk-averse strategy, stating it stifles creativity and great game development.
– The gaming industry’s repeated layoffs and pursuit of perpetual growth have led to widespread frustration and concerns about its future sustainability.
Microsoft’s latest wave of layoffs has sparked outrage across the gaming industry, with developers calling the cuts a devastating blow to creativity and talent. Despite reporting $26 billion in profits last quarter, exceeding Wall Street expectations, the tech giant announced plans to eliminate 9,000 jobs, many from its Xbox division. The restructuring has already led to the cancellation of high-profile projects like Rare’s Everwild and an unannounced Zenimax MMO, along with studio closures such as The Initiative, which was working on a Perfect Dark reboot.
Since early 2023, Microsoft has laid off more than 20,000 employees, leaving developers questioning the sustainability of an industry increasingly driven by short-term financial gains. Industry veterans and indie creators alike have taken to social media to voice their frustration, describing the layoffs as a reckless waste of potential.
Eric Neustadter, former Xbox Live operations manager and current VP at The Pokémon Company, called the situation “heartbreaking,” adding, “The incentives are so misaligned that fun games and profitable teams no longer seem to matter.” John Epler, narrative director for Skate and a BioWare alum, echoed the sentiment, stating, “After 18 years in this business, I’ve never seen it this grim.”
Rami Ismail, co-founder of Vlambeer, criticized the cyclical nature of mass layoffs, saying, “There has to be a better way than this, a better industry that doesn’t keep failing its people.” Emma Kidwell, writer for Civilization 7 and Marvel’s Midnight Suns, joked darkly, “The games industry is going to turn me into the Joker.”
Many see Microsoft’s cuts as symptomatic of a broader corporate obsession with endless growth. Chandana Ekanayake, creative director at Outerloop Games, called the layoffs “a colossal waste of talent,” adding, “Prioritizing quarterly profits over people isn’t sustainable, it never was.”
Bruno Dias, former narrative designer on Fallen London, questioned Xbox’s long-term strategy, tweeting, “When layoffs become routine, isn’t that just a death spiral?” He compared Microsoft’s approach to a private equity firm stripping assets, noting Xbox’s shift away from hardware while simultaneously dismantling its game portfolio.
Criticism also targeted Microsoft’s heavy investment in AI amid the layoffs. Respawn systems designer Andrew Carl pointed out the irony, saying, “They’re gutting teams while dumping billions into AI tools nobody wants, tools that lie, have security flaws, and consume absurd amounts of energy.”
Even Seamus Blackley, creator of the original Xbox, weighed in, arguing that “great games come from taking risks, not canceling anything that hits a snag.” When a follower joked that Microsoft’s decisions might be AI-driven, Blackley quipped, “Then they’ll be wrong, and insist they’re right.”
Firaxis narrative director Cat Manning summed up the industry’s exhaustion: “I just want to make things that excite players.” For many, the latest layoffs underscore a troubling disconnect between corporate priorities and the creative passion that drives gaming forward.
(Source: PC Gamer)
