Xbox planning layoffs and marketing cuts under new CEO
Layoffs and budget cuts could mean slower PC ports and fewer Game Pass deals
Xbox is preparing another round of layoffs and marketing budget cuts, according to IGN reporting citing internal sources. New CEO Asha Sharma outlined plans to "reset" the business in recent internal communications.
The scope of the cuts isn't specified, but sources describe them as "significant." Marketing budgets are getting slashed alongside headcount reductions. This follows previous waves of layoffs across Xbox and parent company Microsoft in 2023 and 2024.
For PC gamers, the concern is how reduced marketing spend affects Game Pass promotions and first-party release schedules. Fewer people working on ports and PC optimization is bad news. We've already seen sluggish PC launches from Xbox studios — Halo Infinite, Starfield — and tighter budgets won't help.
If you're running Game Pass games on PC, check your optimization settings to squeeze more frames out of what you've got. Xbox's 2024 lineup may be lighter than expected.