George Broussard, the veteran developer and 3D Realms co-founder best known for Duke Nukem, has claimed he has seen a list of Xbox studios facing cuts. Broussard is not a traditional journalist or a regular leak account, but he is a long-time industry figure with obvious contacts, and some of his previous warnings around Xbox’s 2025 layoffs broadly lined up with what later happened. Even so, his latest claims remain unconfirmed and should be treated as rumour until Microsoft or established reporters verify the details.
According to what Broussard says, “If it’s even close to true (and it’s from inside) this will likely be the largest single layoff event in gaming history.”
Definining what classifies as a “single” layoff event is a little tricky, but let’s assume for a moment it’s a single announcement. In that case, it would be January, 2024 when Microsoft announced 1,900 people at Xbox were being cut from the company. That would mean for Broussard’s estimate to be true, we are looking at probably 2,000+ folk at Xbox losing their jobs, a truly devestating number.
“Xbox is going to be supremely unpopular for a very long time and the devastation is going to reverberate like the meteor that took out the dinosaurs,” said Broussard, while also noting that layoffs will likely be occuring at whatever studios survive the culling.
The cuts are expected to be announced very soon as Microsoft’s fiscal year ends today, June 30th.
Based on current reporting, it seems like pretty much everyone is at risk. However, there are a few studios that have been specifically called out as facing uncertain futures that may involve closure, being sold or being given a chance to go independent, although that last option would still likely involve people losing their jobs.
Those studios are Compulsion Games, Ninja Theory, Double Fine and Arkane.
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