Microsoft Just Gutted Its Gaming ...

Microsoft Just Gutted Its Gaming Division — MASS Layoffs, Canceled Games, and Studio Shutdowns

Explicit

Error Code Show by AlextheHumanoid and Jay Weiler

S2 · E48

Aug 30, 2025

14:13

Episode notes

Each week we give you breakdowns, debates, analysis, Easter eggs, and video essays about your favorite games, TV shows, music, movies and more. Especially if your favorites include superhero movies and Star Wars. You can add your opinion and join us LIVE each week over on our Twitch channel: https://www.twitch.tv/humanoidhq or our YouTube channel: https://www.youtube.com/@errorcodeshow

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This week, Microsoft dropped a bomb on the gaming industry — laying off over 9,000 employees, with major cuts across its Xbox division and game studios. The damage is real:

🎮 Everwild from Rare? Canceled.

🎯 Perfect Dark Reboot by The Initiative? Canceled — and the studio shut down.

🔥 John Romero’s new FPS? Funding pulled.

🚨 Blizzard, Raven Software, Zenimax, and Turn 10 all hit HARD.

⚰️ Entire games scrapped, dev teams gutted — and all of it under Microsoft’s watch. So here’s the real question: Why is Microsoft buying the entire gaming industry just to kill it? Are they even capable of running studios anymore? Or is Game Pass, AI, and corporate bloat destroying the future of gaming? We break it all down — no spin, no PR fluff, just the brutal truth.

🕹️ Drop your thoughts in the comments: Is Xbox still a future you believe in?

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