Xbox Game Pass falls short of targets, prompting layoffs at Microsoft studios
Xbox Game Pass has underperformed significantly against Microsoft's expectations, with the service reaching only approximately 30 million subscribers—a substantial gap below the company's targets. The gap has prompted cost-reduction measures throughout the Xbox organisation, leading to employee reductions across its owned development studios.
Obsidian Entertainment, a Microsoft-owned developer, has been substantially affected by the restructuring. The studio's workforce reductions span career-stage experience levels, eliminating both long-standing team members with extensive tenure and newly onboarded staff who had minimal time at the company, reflecting the breadth of the cost-cutting exercise.
- Xbox Game Pass has underperformed, reaching ~30 million subscribers far below Microsoft's targets
- The subscriber shortfall has prompted layoffs across Xbox-owned studios including Obsidian Entertainment
- Job cuts affect staff at all career stages, from veteran employees to recently hired workers
Coverage
- Polygon — Xbox Game Pass reaches 30 million subscribers, far below Microsoft’s target
- PC Gamer — Obsidian hit by Microsoft Xbox layoffs despite avoiding earlier cuts