Microsoft laid off more than 3,500 employees on July 6, shutting down five game studios. It’s the largest gaming layoff in years. Three-fifths of those cut work in Game Pass operations, despite the subscription service posting player milestones.
The layoffs touched Bethesda, Activision Blizzard, and Obsidian Entertainment divisions. CWA union members are pushing back on rejected bonus proposals tied to the cuts.
Price Hikes Compound the Pressure
On the same day, Xbox announced console price increases effective August 1. The 1TB Xbox Series X will jump to $799.99, up 60 percent. The Series S hits $599.99, a 71 percent rise.
These are the steepest hikes since the current generation launched in 2020. Nintendo’s strategy looks gentler—the Switch 2 rose just $50 to $499.99 starting September 1.
What’s Left
The Halo: Campaign Evolved launch stays on track for July 28, with early access beginning July 23. The limited-edition Xbox Series X25 in translucent original-Xbox styling remains scheduled for November 2026.
Game Pass itself faces an identity crisis after losing retail economics while still funding studio operations.
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