The fact that the layoffs came not as a result of a underperforming business but as a result of Microsoft wanting to divert resources into AI has made me more pessimistic that there's a chance that one day Microsoft will straight up shutdown the entire division or sell it off. Rare is a profitable studio, that's public knowledge thanks to UK law, Zenimax is reportedly highly profitable, King got hit hard despite being highly profitable.
What's stopping Satya in the future from going: "Okay, Microsoft Gaming is profitable but AI has far more potential so why are we spending billions into Microsoft Gaming for modest profits when we can instead divert all that funding towards AI which is going to change the world and bring us in massive profits" That's all these companies care about, if not AI it will be the next golden goose that Satya chases.
I think if Satya could he would go back and stop the ABK acquisition so he can invest that money into AI instead and then straight up close XGS/Zenimax. They have ABK now so it's a bit more complicated as it does make them good profits but good profits are irrelevant to the AI dream. Then when AI doesn't revolutionise the world, they'll move onto the next thing to chase after at the expense of everyone else.
Won't be surprised if the entire Surface line-up is killed off soon to invest into AI some more. I don't think MS Gaming or any division in Microsoft (with the exception of Cloud) will be safe for years now, they'll be mass layoffs every year, until this AI craze dies down, Satya will be investing another $80bn into AI next year, then the year after, then the year after that, chasing after the golden goose.
Feels like this AI craze needs to die to save Xbox.
Last edited by Ryuu96 - on 05 July 2025
