Not all Microsoft acquisitions have been a disaster. They were down to like 5 studios at one point - 343 (Halo), Coalition (Gears of War), Turn 10 (Forza Motorsport), World's Edge (Age of Empires), and Rare (Mainly Sea of Thieves now). Xbox then acquired Mojang in 2014, which has been their biggest success with Minecraft still being one of the most played games and bringing in tons of money with its marketplace.
Xbox then acquired a bunch of smaller to medium studios in 2018 and 2019 - Playground Games, Obsidian, Compulsion, inXile, Ninja Theory, Undead Labs and Double Fine. Playground Games has been their second biggest success after Mojang with Forza Horizon and now the Fable reboot. Also most of these studios have been mainly untouched from these recent layoffs.
Things changed in 2020 when they acquired ZeniMax/Bethesda. Tango, Alpha Dog Studios, Arkane Austin, and Roundhouse Studios would eventually shut down from that acquisition. Though, Tango would be later saved and sold off.
Once the Activision Blizzard deal closed Xbox laid off 1,900 employees in 2024 (mainly at ABK) then several hundred more in 2025.
Xbox was likely betting on the Xbox Series X|S having sold far better (think Xbox 360 numbers or better), Xbox Game Pass would grow to 100M+ subscribers, and the growth during COVID would continue. With the Xbox Series X|S falling off they were pretty much forced to release as much as possible on PlayStation and Nintendo to improve revenue.
VGChartz Sales Analyst and Writer - William D'Angelo - I stream on Twitch and have my own YouTube channel discussing gaming sales and news, as well as posting random gaming content. Follow me on Bluesky.
I post and adjust the VGChartz hardware estimates, with help from Machina.
Writer of the Sales Comparison | Monthly Hardware Breakdown | Monthly Sales Analysis | Marketshare Features, as well as daily news on the Video Game Industry.
