Microsoft cuts about 3,200 jobs as Game Pass drops subscribers
Technology
Xbox Game Pass has lost four million subscribers since 2024, dropping from 34 million to 30 million.
Xbox CEO Asha Sharma called out the slower growth and just announced a major shake-up, laying off about 3,200 employees and parting ways with five studios, including Arkane (the team behind Dishonored).
Game Pass missed 77 million target
Microsoft had hoped Game Pass would hit 77 million members by now, but price hikes last year pushed some players away.
In April, they lowered prices again and future Call of Duty games won't launch on day one for Game Pass anymore.
Sharma also mentioned that Xbox's gaming profits are slimmer than competitors,' so this restructuring is all about getting the business back on track.