XBOX FACES NEW LAYOFFS AS MICROSOFT SAYS IT 'OVER-EXTENDED'

Microsoft executives told staff the Xbox division had stretched itself too thin, raising concerns that developer layoffs could follow. The memo suggests leadership is reconsidering the company's gaming portfolio and studio commitments. This marks another round of consolidation for Xbox, which has undergone previous workforce reductions. The timing reflects broader challenges in the gaming industry, where major publishers have cut thousands of jobs over the past year amid changing market conditions. Microsoft's Game Pass subscription service and acquisition strategy have significantly expanded its developer base in recent years. The current review suggests the company may be trimming operations or consolidating overlapping projects. No specific studio closures or layoff numbers have been announced. Industry observers note the move could affect internal teams or recently acquired studios as Microsoft reassesses its gaming strategy going forward.