Microsoft Xbox layoffs trigger industry-wide concerns

Microsoft announced a large wave of layoffs at its Xbox division, with the creator of Duke Nukem 3D describing the cuts as potentially the biggest in video‑game history. The reductions raise questions about future Xbox releases, studio consolidations and the broader impact on developers and partners.

At the same time, Paweł Sasko, associate director of the upcoming Cyberpunk 2 at CD Projekt RED, warned that the gaming sector is "falling apart" after an estimated 4,658 jobs were cut – a 63 % increase over the previous year – and 16 studios were closed. Despite the turmoil, CD Projekt RED is continuing to hire staff in Poland, the United States and Canada for projects such as The Witcher 4 and Cyberpunk 2.