Microsoft Xbox layoffs spark Quebec labor lawsuit

Microsoft's Xbox division has come under scrutiny after a wave of layoffs affected staff at Bethesda's Montreal studio. Workers allege the company failed to provide the statutory notice and severance required by Quebec labour law, prompting legal action against the subsidiary.

In a separate development, Microsoft is testing an ad‑supported Xbox game‑streaming service. The experimental tier allows Xbox Insiders to stream games for free, provided they watch ads before each session and are limited to one hour of playtime. The feature is not yet publicly released and is being evaluated for broader rollout.

Both initiatives reflect Microsoft’s efforts to restructure its gaming business while exploring new revenue models for its Xbox platform.