WSJ Tech News Briefing · Monday, July 6, 2026
Microsoft is laying off more than 3,000 employees from its Xbox video game division and plans to sell or spin off several game development studios. This move reflects a broader trend of layoffs across the video game industry, which experienced aggressive expansion during the pandemic followed by a slowdown as consumer behavior shifted.
“Microsoft is cutting more than 3,000 jobs from its Xbox video game division.”
“The company also announced plans to sell or spin off four video game development studios and is exploring strategic options for a fifth.”
“The video game industry has been pummeled by layoffs after companies expanded aggressively in response to a surge in business during the pandemic that petered off when the world reopened.”