Get all your news in one place.
100's of premium titles.
One app.
Start reading
PC Gamer
PC Gamer
Andy Chalk

The games industry reacts to Xbox layoffs: 'We are clearly at a turning point'

Asha Sharma, chief executive officer of Xbox,, during the Bloomberg Tech conference in San Francisco, California, US, on Thursday, June 4, 2026. The event brings together the leading CEOs, investors and innovators who are harnessing technology to change the world around us. Photographer: David Paul Morris/Bloomberg via Getty Images.

The latest mass layoff at Xbox will see roughly 3,200 people lose their jobs—1,600 today, and 1,600 more over the next fiscal year—and four game studios turned loose into the forest: Compulsion and Double Fine as independents, Ninja Theory and Undead Labs under new ownership. It's bad no matter how you look at it, a reflection of flailing leadership at Microsoft and a dreadful state of affairs for the game industry as a whole.

The bloodletting has inspired a range of reactions across the internet—and yes, there is a small subset of the gaming population celebrating what it sees as a victory of 'real gamers' over some imaginary ideology that holds too many game studios in its grasp.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.