What the Xbox Reset Means for Halo and Game Pass
For players, this means the next Halo game will be made by Activision, and Game Pass's future may change as Xbox reshapes its strategy. It also signals that even profitable giants are cutting costs am…
For players, this means the next Halo game will be made by Activision, and Game Pass's future may change as Xbox reshapes its strategy. It also signals that even profitable giants are cutting costs am…
Key points - Microsoft announced 268 more Xbox layoffs this week, part of a broader restructuring plan. - Xbox boss Matt Booty said the reset is roughly three-quarters complete, with more cuts expected. - The next Halo game is being developed at Activision, not Halo Studios, which was hit by layoffs. - Xbox CEO Asha Sharma cited Game Pass struggles and the shift away from exclusives as reasons for the reset. - Microsoft posted $90 billion in revenue and nearly $36 billion net profit last quarter despite the cuts.
Timeline - July 2025: Xbox announces 1,600 immediate layoffs, with 1,600 more planned by fiscal year 2027. - This week: Xbox announces 268 additional layoffs, hitting Halo Studios and other teams. - End of fiscal year 2027 (June 30, 2027): Deadline for the remaining planned layoffs, with 1,332 still to come.
FAQ
Q: How many Xbox layoffs have there been so far? A: 1,600 in July and 268 this week, totaling 1,868. Microsoft plans 3,200 total by June 2027, leaving 1,332 more cuts.
Q: Why is Microsoft cutting Xbox jobs? A: CEO Asha Sharma said the Xbox business was unhealthy due to Game Pass struggles, the shift away from exclusives, and a severe hardware crisis.
Q: Is Halo Studios shutting down? A: No, but the next Halo game is being made at Activision instead. Halo Studios was among the teams hit by layoffs.
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