Opinion
The Alters and others: why gamers are right to protest against the use of AI
by Debora Pape
Microsoft cuts 9000 jobs: studio closures shake Xbox division
3.7.2025
Translation: machine translated
Microsoft is cutting around 9,000 jobs worldwide, around 4 per cent of its workforce. The Xbox division is particularly affected: studios are being closed and games discontinued. The company is talking about "focussing and efficiency", but questions remain about the strategy.
Microsoft's gaming division is facing a profound upheaval. In recent days, the company has announced a comprehensive restructuring programme that not only affects several studios, but also results in the discontinuation of numerous game projects. A total of around 9,000 jobs will fall victim to the cost-cutting programme: a significant proportion of these in the Xbox and gaming sector.
These studios are affected
The most prominent victim is the Californian studio The Initiative, which was founded in 2018 with much advance praise and top talent from across the industry. The development team last worked together with Crystal Dynamics on the reboot of «Perfect Dark». Now the studio is being closed completely, «Perfect Dark» is officially discontinued and Microsoft is also ending its partnership with Crystal Dynamics.
The traditional British studio Rare is also losing an ambitious project with the cancellation of «Everwild». Although Rare has enjoyed many years of success with «Sea of Thieves», Microsoft is pulling the plug on the new IP. As a consequence, game designer Gregg Mayles is leaving the long-established studio after 35 years.
Mayles is one of the most influential and experienced game designers at Rare. He was instrumental in titles such as «Donkey Kong Country», «Banjo-Kazooie and Tooie» and, last but not least, «Sea of Thieves».
In addition, the previously unannounced online role-playing game codenamed «Blackbird» from Zenimax Online Studios will not be developed further. The long-standing studio manager Matt Firor subsequently announced his resignation.
Dismissals at well-known teams too
The Xbox User Research team is also being significantly downsized. Almost half of the workforce will have to leave. Other cuts include the Xbox Family and Child Safety team.
Microsoft's reasoning: Focus and efficiency
In particular, developers say that Microsoft is doing everything it can to replace as many jobs as possible with AI agents. A worrying development. My colleague Debbie recently wrote about why she thinks gamers are right to protest against the increasing use of AI:
Header image: Robert Way / Shutterstock.com
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