Xbox cut thousands of jobs, but a bigger threat to game development may be happening lower down the ladder — Turkey's AI dilemma is a perfect example

Three AI logos on a dark background: a large Xbox logo in green and gray in the center, a colorful gradient logo on the left, and an abstract orange symbol on the right.

It seems like every time I turn around, there's another round of layoffs affecting video game studios.

In July, Xbox announced its biggest downsizing ever, cutting 3,200 jobs throughout 2026 and 2027. At the same time, Xbox made deals with four major studios to go independent or take on new management.