Microsoft layoffs to provide funds for AI infrastructure, and it is willing to cut games

2025-07-10 20:17:00|Myriagame |source：minecraft skins

Microsoft recently laid off about 9,000 more employees, accounting for about 4% of the company's total employees.According to the Seattle Times, the move is to "slim down" and make room for the company's surge in investment in AI infrastructure.

Although not as the Halo studio developers said last week that Microsoft is “desperately trying to replace employees with AI,” Microsoft is indeed trying its best to cut spending to make way for its planned $80 billion AI investment — a figure of $25 billion more than last year.Microsoft believes that this investment is more necessary now than ever, especially as OpenAI is increasingly "showing its fangs" recently, this already complex partnership has added variables.

However, this wave of layoffs has a significant impact on other business sectors, especially in the gaming field.Microsoft has previously spent tens of billions of dollars to acquire multiple game giants, such as ZeniMax Media, the parent company of the Elder Scrolls, and Activision Blizzard, a developer of Call of Duty, aiming to enrich its content library of Game Pass subscription services.But unfortunately, user growth is far below expectations.Analysts are now starting to question whether Xbox has been wrong, after all, game subscription services are not as popular as music or film and television.

What's more serious is that this layoff has triggered an unprecedented strong rebound in the gaming industry.Just 14 months after shutting down Tango Gameworks, which developed the highly-reputable work "Perfect Sound Wave", Microsoft cut off a new work from ZeniMax Online Studios (the developer of "The Elder Scrolls OL") - a highly anticipated online shooting game "Blackbird Project". Rumor has it that Microsoft Xbox CEO Phil Spencer was shocked during the trial and was addicted to the meeting.

This seems to only show one thing: Spencer himself is not willing to cut off the game, but it is likely that it was "instructed by senior management" and had to make a choice.

The Blackbird Plan is preparing to enter the full production stage and is originally planned to be released at the end of 2028. The cost of continuing development can be imagined.Microsoft has a more priority goal at the moment - that is, to make every effort to increase its investment in AI.For players and developers, this decision is a pity for gamers and developers.

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