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The original was posted on /r/pcmasterrace by /u/Majestic-Bowler-1701 on 2026-07-06 17:44:02+00:00.
- 1600 people lost their jobs today and another 1600 cuts are planned for FY27
- 4 studios will leave Xbox (8 since 2024 when MS released Xbox games on PS5).
- MS lost 64 cents for every dollar they invested in games
- MS is shifting investment to focus on higher‑priority projects
- platform teams are 40% larger than they were at the start of this generation, even as the Xbox/PC player base and playtime have declined.
- Xbox end this fiscal year at 3% accountability margin which is 5x lower than 5 years ago
So many people lost their jobs and so many games were cancelled since Sarah Bond started her campaign “Everything is Xbox” which made Xbox consoles unnecessary. She lost her job a few months ago, but the damage she did to Xbox/PC will take years to fix.
Why are declining Xbox console sales a problem for MS? Because Xbox users were the main source of income for Xbox Division (PC, Xbox, Game Pass). Console users use Xbox Store where MS has a 30% tax on every game and every microtransaction. Game Pass is used by nearly everyone because it is required for multiplayer. Most Xbox users subscribed to the most expensive Game Pass Ultimate which is the only tier with Day 1 games. The average Xbox console user generates a lot more money for MS than the PC or Playstation users. So when gamers migrate from Xbox consoles to PC or PS5 then MS have huge problem
When Sarah Bond started her campaign “Everything is Xbox” console sales dropped by 80-90%. MS had the best games in their history but nobody bough Xbox consoles. Last year, 6/10 most‑played games on PS5 were released by Microsoft and only 1 game was published by Sony. So people bough PS5 to buy Xbox games which may sound good… but those people no longer use Xbox Store and Game Pass so for MS this was a problem