Xbox Layoffs and the PlayStation Disc Disaster

Xbox and PlayStation both made major announcements this summer, and neither was good. Xbox laid off 3,200 people, divested five studios, and signaled a dramatic strategic shift away from smaller, creative games toward its biggest franchises. PlayStation announced it will stop producing physical discs in January 2028, effectively ending the era of owning games on disc. The two developments, covered in this episode of Triple Click, paint a grim picture for the console industry and raise serious questions about the future of game preservation, studio morale, and what it means to own a game at all.

Xbox’s "Reset" Means Mass Layoffs and a Narrower Focus

Under new CEO Asha Sharma, Xbox enacted what it calls a "reset." The company laid off 1,600 people immediately, with another 1,600 cuts planned over the coming fiscal year—meaning employees who survived the first round don't know if they'll be next. Five studios were divested: Compulsion Games and Double Fine are going independent through management buyouts; Ninja Theory and Undead Labs were sold to undisclosed buyers; and Arkane (maker of Dishonored and the upcoming Blade game) is beginning a lengthy process to be sold or shut down, complicated by French labor laws.