Microsoft cuts 4,800 jobs, as Xbox unit downsizes and plans to spin off four gaming studios

[pat_k]

Source: CNBV

Key Points

Microsoft is laying off 4,800 employees immediately, after carrying out a voluntary retirement program.

The company’s Xbox video game unit is cutting one-fifth of its staff, and four studios will go independent.

Microsoft’s stock is down 19% this year, trailing its megacap peers.

Read more: https://www.cnbc.com/2026/07/06/microsoft-cuts-2point1percent-of-employees-as-xbox-unit-plans-to-spin-studios.html

[Cheezoholic]

1. Video game progression relies so much on ever improving hardware, whether it be consoles or PC's

With these Data Centers eating up silicon faster than it can be produced the ability for your average gamer to upgrade to a better, more demanding of hardware game, is just too much. 300 dollar high end video cards in PC's are now approaching 1k plus. They can't build new consoles at a reasonable price not just because the silicon parts are getting insanely expensive but also because they can't get their hands on them. They have to order 1-3 years out just to get whats out there today. Those of us in this world whether it be playing games or building systems for games have been warning about this crap as far back as the COVID years. It's gone over the edge now. Just the memory for a PC today cost as much as an entire PC would've 2 years ago. From this lens one can see the bubble being stretched to its limit.