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Microsoft Lays Off Nearly 5,000 Employees Across Xbox, Commercial Sales

1 month 3 weeks ago
Microsoft is laying off about 4,800 employees, including 1,600 from Xbox, as it restructures around AI investments and tries to reset its struggling gaming business. "Our business is changing because the world around it is changing. The way technology is built, deployed, and used is transforming faster than at any point in my time here," said Amy Coleman, EVP and chief people officer at Microsoft. "Our customers' needs are shifting, the business models that serve them are shifting, and that means the work itself -- what we do, where we focus, and how we're organized -- has to transform too." She continued: "Companies don't get to choose whether their industry changes; they only get to choose whether they change with it. That means we will need to adjust resources and roles and shift how we operate so we can have the greatest impact for our customers." TechCrunch reports: Coleman stressed that the roles being eliminated today "are not being replaced by AI," but noted, "what is true is that AI is changing how work gets done." "Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves," Coleman wrote. [...] Speaking about the Xbox layoffs, Coleman said little: "We are restructuring to position the business for long-term success. Engineering teams across the company will also evolve their structure and priorities to meet customer needs and innovate for the future." Of today's 4,800 layoffs at Microsoft, 1,600 will hit Xbox, with about 3,200 cuts in total expected through fiscal year 2027, according to Asha Sharma, CEO of Xbox. In an email she sent to employees on Monday, Sharma called this "the most significant restructure in Xbox history." "Our business today is not healthy," Sharma wrote. "We are operating at margins that are 3-10x lower than comparable platform and publishing businesses." She added that Xbox made bets like its monthly subscription service Game Pass, alongside moves to grow its portfolio of content and invest in multi-platform, among other attempts to breathe life into the business. None of those strategies grew at the expected pace, leading to the core business weakening even as Xbox added more teams and investment. "And now the industry is facing the most severe hardware crisis in its history," Sharma said. "We must reset Xbox." As part of the shift, Microsoft will transition four of its gaming studios to operate under new management, ensuring preservation of intellectual property and ongoing projects. Specifically Compulsion Games and Double Fine Productions will return to independent studios, according to Sharma. Ninja Theory and Undead Labs are coming under new ownership with funding to complete and grow some of their more popular games. According to Sharma's memo, Xbox is also flattening management hard, cutting the current 14 management layers to no more than five, but ideally three. As part of this major organization redesign, Xbox is making longtime executive Helen Chiang chief operating officer with end-to-end profit and loss authority across content, hardware, platform, and services. Xbox's restructuring plan centers around narrowing focus by dropping sprawling creative bets that don't produce platform-scale returns, and instead homing in on core strategic pillars like Mojang and King, the businesses behind Minecraft and Candy Crush.

Read more of this story at Slashdot.

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Nintendo Switch 2 Is Getting a Replaceable Battery in Europe

1 month 3 weeks ago
Nintendo will stop selling the original Switch in Europe in mid-February 2027, nearly 10 years after the console's launch. In its place, the company will release updated versions of the Switch 2 and several controllers with user-replaceable batteries to comply with new EU regulations. The Verge reports: The news comes as Nintendo is making a bunch of changes to the rest of its lineup due to EU regulations requiring user-replaceable batteries. Starting this summer, the company says it will start introducing updated versions of various devices on "a rolling basis," ahead of the regulations coming into effect on February 18th, 2027. "There is no difference in functionality between current products and revised products containing user-replaceable batteries," Nintendo says. The Switch 2 is the most notable product being updated -- the new version is expected to start rolling out in the fall -- but there will also be versions of the Joy-Con controllers, Joy-Con 2, Switch 2 Pro Controller, and N64 and GameCube Switch controllers with user-replaceable batteries. "Due to a variety of factors, revised products may not become available in all European countries simultaneously," Nintendo notes.

Read more of this story at Slashdot.

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