Ex-Forza Horizon Director Traces a Line From the Failure of ‘Well-Meaning’ Game Pass to the Current Xbox Layoffs
ign.com Jul 21, 2026

Ex-Forza Horizon Director Traces a Line From the Failure of ‘Well-Meaning’ Game Pass to the Current Xbox Layoffs

AI-summarised brief · reviewed before publication

Microsoft’s Xbox division is undergoing its most extensive restructuring, with CEO Asha Sharma announcing 1,600 staff cuts and a plan for another 1,600 layoffs this fiscal year. Four studios have already exited Microsoft ownership, and a fifth is pending. Former Forza Horizon creative director Mike Brown attributes the turmoil to Game Pass failing to reach projected subscriber targets, undermining the $69 billion Activision Blizzard acquisition and the viability of newly acquired studios. The layoffs reflect a broader effort to trim costs and realign the gaming business.

💡 Why It Matters

  • · The scale of the cuts signals a decisive shift in Microsoft’s gaming strategy, potentially reshaping the industry’s studio landscape and influencing future content investment decisions.