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Behind Xbox's Big Layoffs, a Streaming Strategy That Failed

Behind Xbox's Big Layoffs, a Streaming Strategy That Failed

Tech Bloomberg
Xbox is laying off 3,200 employees and shuttering five studios after a failed strategy to chase high-budget streaming games.
What: Microsoft's gaming division is restructuring to focus on core, proven franchises like Minecraft after overextending on studio acquisitions and projects that underperformed.
Why it matters: This move highlights the risks of aggressive consolidation in gaming and the difficulty of pivoting traditional console giants into streaming-first service models.
Original article

Xbox announced on Monday that it would lay off 3,200 employees and let go of five game studios. The company is aiming to reset itself after overspending on studios, staff, and games that people didn't want to play. Xbox plans to take a more streamlined approach to games and studios going forward. It will focus more on franchises like Minecraft, which is considered one of the most successful video games in the world.

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