Another piece of bad news has come from Microsoft in the gaming industry. Following Sony and PlayStation's decision to move away from physical media, significant changes are also happening on the Xbox side. Microsoft is making substantial cuts to its workforce, with the gaming division expected to be the most affected by this situation. According to a report from CNBC, 4,800 job positions will be eliminated across the company, with 3,200 of those coming from Xbox. These cuts are expected to take place by 2027.

The impact of this alarming news is quite significant. According to the CNBC report, about one-fifth of the Xbox workforce will be laid off. While 1,600 of these cuts will be implemented immediately, the remaining positions are planned to be closed within the next year. Microsoft's move seems likely to have a considerable effect on the company's future strategies.

Xbox CEO Asha Sharma stated in a message to employees that the changes will occur gradually. "It's not possible to make all the necessary changes in one day," said Sharma, expressing hope that the company will return to growth by 2027. However, this situation will not be very comforting for teams facing significant workforce reductions.

Sharma emphasized that she wants Xbox to be one of the few companies that provides entertainment to over a billion people every day and offers everyone the opportunity to create and connect. "I believe we can achieve this goal," she said, noting that Xbox has some of the most beloved franchises in entertainment history and talented studios around the world.