Microsoft is laying off 268 Xbox staffers and Ninja Theory may close

Steelman: both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Microsoft faces genuine competitive pressure in gaming and must deploy its resources efficiently to pursue profitable, sustainable growth. The restructuring consolidates duplicate capabilities, gives proven franchises to studios with stronger track records, and frees capital for Game Pass infrastructure and higher-return ventures. Keeping underperforming studios open would waste shareholder resources and employees' time on projects unlikely to succeed, ultimately hurting more people. Strategic clarity now, however painful, is better stewardship than propping up studios that lack a viable path forward.

The case against

These layoffs impose severe human costs on talented workers and families who made career decisions in good faith, whilst reflecting poor strategic planning by Microsoft's leadership—massive acquisitions (Bethesda, Activision) represent tens of billions in capital that have now underperformed, yet employees bear the consequences rather than executives. Ninja Theory and other shuttered studios represented creative talent and institutional knowledge that took years to build and cannot simply be rehired later. The gaming industry's creative health depends on stable employment and long-term creative vision, not quarterly resets driven by failed acquisition strategies. Workers should not subsidise corporate miscalculation with their livelihoods.