Updated
Updated · Kotaku · Jul 20
Xbox Cuts 3,600 Jobs as Game Pass Retreat Follows $70 Billion Call of Duty Bet
Updated
Updated · Kotaku · Jul 20

Xbox Cuts 3,600 Jobs as Game Pass Retreat Follows $70 Billion Call of Duty Bet

3 articles · Updated · Kotaku · Jul 20

Summary

  • Xbox’s overhaul under CEO Asha Sharma includes 3,600 layoffs, studio cuts and a sharper focus on Halo, Fallout, The Elder Scrolls and Minecraft.
  • Game Pass drove the reset after subscriber losses accelerated following a major price hike tied to adding Call of Duty day-and-date, according to former Forza Horizon 5 director Mike Brown.
  • Microsoft later lowered the subscription price and removed Call of Duty from the service’s day-one commitment, retreating from a strategy that once targeted more than 100 million subscribers.
  • Brown said Xbox had invested heavily in Game Pass to fund studios and jobs, arguing the model was well-intentioned but failed to attract enough paying users to stay viable.
  • The shift deepens a broader rethink of Game Pass, which recent reports said Xbox leaders increasingly see as unsustainable and damaging to game values.

Insights

With Call of Duty no longer a day-one release, what does the future of Xbox Game Pass really offer its subscribers?
As its own studios 'detest' the service, can Game Pass ever become truly profitable for Xbox without developer buy-in?