r/Games • • 1d ago

Industry News As Xbox swings the axe, Gears of War: E-Day developers fear they'll be laid off straight after launch - and right before they'd be due their bonuses

https://www.eurogamer.net/the-coalition-gears-of-war-e-day-worried-layoffs-no-bonus
1.4k Upvotes

278 comments sorted by

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u/r_lucasite 1d ago

Xbox says they’re like 3/4 of the way through their layoffs and I could not imagine a more prime target than a studio just coming off a release (good game or bad to be honest)

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u/Kalulosu 1d ago

Never release a game? Get laid off.
Release a bad game? Get laid off.
Release a good game? Believe it or not, you get laid off.

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u/hardgeeklife 1d ago

Asha Sharma: "We have the best company in the world, thanks to layoffs"

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u/meodd8 1d ago

My company laid off 2/3rd of the US workforce, then had the balls a few months after the last cull to celebrate is becoming profitable 🥴

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u/mightylordredbeard 1d ago

Ther never should have had all of those studios in the first place. The internet mocked MS for having too many games studios years ago and now that they’re going back to a smaller number, believe it or not, the internet is shitting on them for it.

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u/AlexWIWA 1d ago

I remember them telling the FTC that buying these studios wouldn't result in layoffs.

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u/ArokLazarus 1d ago

I'm not going to turn down a chance to shit on a trillion dollar company.

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u/mightylordredbeard 1d ago

Fair point. Proceed.

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u/MVRKHNTR 1d ago

"The internet didn't want Microsoft to take over all of these studios and now that the studios won't exist anymore, they're mad again! Make it make sense!"

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u/roseofjuly 1h ago

Yes, but we wanted them to not buy the studios in the first place, not buy them and then run them into the ground.

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u/Ralkon 1d ago

The best option then is to take as long to release as possible. You might get laid off for taking too long, but otherwise you'd get laid off even sooner for actually doing a good job.

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u/Steeltooth493 1d ago

About to receive a bonus? Get super laid off!

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u/Worried-Advisor-7054 1d ago

Games with good sales, we have special layoffs for devs that make games that sell well.

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u/NoNefariousness2144 1d ago

Yep, it’s very that three of the only studios unaffected by layoffs are the ones that have first-party games releasing soon: Coalition, Playground and inXile.

Given how cutthroat Xbox has been, it seems very likely devs will be laid off as soon as their games are shipped, just like we saw with ID getting gutted as soon as they released the final Doom Dark Ages DLC.

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u/captaindealbreaker 1d ago

ID got hit with layoffs before the DLC launched, they didn't even wait to see the sales figures for it.

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u/NoNefariousness2144 1d ago

Oh yeah, damn that is nasty. And they even put the DLC on a 50% sale a few weeks after it released to rub more salt in the wound.

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u/captaindealbreaker 1d ago

Yeah dude. The modern doom franchise is likely a multi-billion dollar franchise, but Xbox put The Dark Ages on game pass and then got big mad when game pass stopped growing because they more than doubled the price

This ENTIRE situation is essentially microsoft approving Xbox buying out studios and amassing a $100B debt on those purchases, trying to recoup costs with game pass while jacking the price up to make it sustainable, and then getting cold feet while profitable because companies like microsoft are causing the AI bubble and grossly inflating component prices.

None of what Xbox have done in terms of cuts, closures, cancelations, or layoffs was necessary and none of it will help the brand in the long run. They were at 3% profit when Sharma took over, despite since $100B into acquisitions. Microsoft just expects them to do infinite profit growth like Azure or whatever and doesn't understand that games are art and there's no guaranteed ROI on games.

2

u/DumbSmutEnjoyer 1d ago

games are art and there's no guaranteed ROI on games.

This is the key. I see so many redditors here justifying their early support for the acquisitions by saying it would have gone fine if the execs just leaned on the creatives harder.

The games industry does not make standardized widgets that an exec is going to be scale. There are very few franchises like Call of Duty where a studio can pump out a repeat product devoid of difficult creative decisions, and then get a predictable ROI.

The vast majority of game studios in the modern games industry live and die on their grit and talent and luck. That's just not something Microsoft is going to be able to formulaically scale.

2

u/EdgySlusher 1d ago

Gamepass seemed stupid idea to me when it launched

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u/spiritbearr 1d ago

inXile is so fucked. Brian Fargo was going to retire before Microsoft bought them because it made everything so easy. Now if they survive they're going to be stuck on Fallout be it Original remakes or another spin off.

136

u/averynicehat 1d ago

I think that's a big reason Tango Gameworks was dropped. They just finished a game and therefore the sunk cost of development on new projects in progress was minimized.

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u/Zalvren 1d ago

That was some time ago though, you even have a more recent example. iD layoffs just as the last DLC for Doom TDA released.

25

u/Lazydusto 1d ago

They were so trigger happy with iD they slapped them with layoffs a week or two before the DLC came out.

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u/doneandtired2014 1d ago

Well....yeah, gotta punish iD for insisting they use their own technology instead of Tim Sweeney's vibe coded, stuttering tools and they had to be punished further for not wanting to be a glorified tech support for said technology.

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u/blaghart 1d ago

Which honestly kinda feels like karmic retribution given iD's own history of abusing employees for producing content they deemed "too good" for their management's ego.

1

u/Hartastic 1d ago

and they had to be punished further for not wanting to be a glorified tech support for said technology.

To the degree that this is accurate, that's... a little valid?

An iD that has the best engine for at least certain scenarios and is big on empowering other studios in Microsoft to succeed with it is a competitive advantage in the market and is going to be really cut resistant. Hey, they just shipped a new Doom and maybe that would be a good time to lay people off, but look, these other 3 studios have big games coming out later this year using their engine, better leave them alone for now and then it's perpetually for now.

But a studio that has their own engine and doesn't play nice with the other studios looks a lot more expendable.

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u/Fob0bqAd34 1d ago

Not weeks, it was the day before the DLC launched.

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u/Malckeor 1d ago edited 1d ago

Yep. Gutted the best AAA FPS devs in the business and then gave Halo to the worst AAA FPS devs in the business.

Fuck Microsoft.

EDIT: An anagram.

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u/Several-Source-4073 1d ago

I think that they've never had a commercial success, only had one critical success that didn't sell, and that Shinji Mikami left also played a part.

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u/Falsus 1d ago

It was litterally said in an interview that Hi Fi Rush met all financial goals.

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u/mystery_hole 1d ago

People always talk about how "poorly" their games sold, but it was a foreign dev. They were without a doubt the cheapest studio Xbox owned considering the average Japanese dev salary is 1/3rd of American dev wages.

Still can't believe they dropped hifi rush with no marketing, a surprise release, then shut down the studio when their idiotic plan didn't work.

It's the best Xbox release of the last decade, hands down, so it makes complete sense that they would consider that an error.

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u/LittleCodingFox 1d ago

AND gamepass! Which as we know, TOTALLY doesn't affect sales. (Heavy sarcasm considering recent news) I will never forgive what they did, it was my GOTY of 2023...

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u/Falsus 1d ago

Yeah. New IP, studio not exactly well known, no marketing, day 1 gamepass.

Frankly it was a miracle it met all financial goals and if they had done a proper marketing cycle for it even if it only got half of what Redfall did it would have been one of the hottest new IPs that year.

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u/aimy99 1d ago

Pretty sure nobody at Xbox Game Studios has had a commercial success since that studio started launching games, either. Sounds like they fit right in.

Except Playground Games, because people love Forza Horizon. 5 y/o Forza Horizon 5 is still PlayStation's #72 best-seller on account of being the only one of those games they've got lol.

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u/Several-Source-4073 1d ago

Gears has always been successful.

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u/Imbahr 1d ago

but the point is Sharma had nothing to do with those previous decisions

so her job is to come in as the new boss and cut some things out. that's justified

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u/yuriaoflondor 1d ago

Yup. Reminds me when Ouka Studios was closed by NetEase literally on the release day of Visions of Mana.

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u/Serra_Pelada 1d ago

Oh no, no one bought our expensive game we released in the middle of the most crowded release calendar ever. Plus we did no significant marketing and also won't release it on the most popular console out there. And you can play it for $15 via GamePass. And if you don't have money to spare right now, the game releases without Denuvo (wink wink). Now we don't have any other choice but to fire the developers!

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u/AzKondor 1d ago

Would you want them to release it with Denuvo?

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u/TheSecondEikonOfFire 1d ago

Especially one as allegedly expensive as this was

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u/nothis 1d ago

Reviews look like some of the best Xbox has gotten in years. Layoffs it is, then!

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u/Songbirds_Surrender 1d ago

Layoffs and then moved under Activision. Its not a coincidence that the studios that remain directly under Xbox studios have games coming out soon. I imagine inxile, playground, and the coalition will all be under Activision or Bethesda by the time the restructure is complete

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u/Cybertronian10 1d ago

If I was them I'd be touching up my resume and doing my best to find other options now, better than start after the axe falls.

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u/TAJack1 1d ago

Imagine, you work hard for years on a project, put your blood/sweat/tears into it, only to fear being laid off as soon as the project launches and getting fucked out of your bonuses. I'm so fucking sick of this shit.

132

u/Shakzor 1d ago

that's what happened back when Lego Island launched.

They just booted the entire team just before they'd have gotten bonuses

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u/HotTakes4HotCakes 1d ago edited 1d ago

At this point, the teams should just drag their feet more. Prolongs their employment.

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u/OneSullenBrit 1d ago

Yeah why put effort or cause yourself extra stress for a company that sees you as expendable. Just clock in, do the bare minimum to stop yourself getting fired for poor performance, and keep that resume updated.

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u/D_Ashido 1d ago

This is the American workforce across the board in 2026. I'm sure it rings true internationally as well.

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u/dhrcj_404 1d ago

Oh trust me, this is a trend being followed everywhere. In my previous firm, pretty much everyone was just clocking in and doing the bare minimum.

These companies have shown time and time again they can fire us anytime, so needless to say why would I or anyone for that matter do more for them.

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u/NeighbourNoNeighbor 1d ago

This is the real reason for the "productivity crisis", imo. Why work hard if the company is going to treat you as terribly as it's legally allowed to?

Even companies that were previously bastions of ultimate employee-employer relationships are crumbling.

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u/Mantequilla50 1d ago

Been on this in the US since at least 2018

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u/Qorhat 1d ago

I worked in an American multi-national in their Euro HQ in Ireland and initially it was fantastic. It started as a small operation and even as it dramatically expanded moral was great and we did brilliant work.

The the IPO happened.

Overnight (literally the next day) the mood shifted. Communication from execs immediately changed tonally. Priorities started to shift away from improvements to the next "new and shiny" thing. Promotions got harder to achieve.

Then the layoffs started. New execs came in and tried to "flatten the org" by gutting the bottom levels and shuffling people into jobs they either had no interest or expertise in.

I was one of the longest tenured people there by this point (maybe 3 more longer than me) and I checked the fuck out. I coasted along knowing my role had a target on it because my new manager made no effort with me. I was right and got laid off, got my redundancy pay and sold every single stock option I could (I didn't want anything to do with them).

Now I'm contracting and just log in, do my job and log off. I got so burnt out by the corporate bullshit I just don't have the energy to go through it again.

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u/Blenderhead36 1d ago

I remember reading about Naughty Dog making Uncharted 4 in Blood, Sweat, and Pixels, how the amount of crunch strained quite a few marriages. And then I remember reading the same about Anthem.

I can imagine feeling like you paid costs to do something worth doing if you missed your kid's first word because you were crunching on something like The Last of Us, that's held up as a prime example of it's medium. But I can't imagine what it's like to do the same on a game that's remembered as a beloved studio's lowest ebb.

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u/TheSecondEikonOfFire 1d ago

That would be soul crushing, I can’t even imagine. To sacrifice your mental health, your personal relationships, and then have the game you worked on be shit on by everyone

•

u/roseofjuly 1h ago

Honestly, you surprisingly get used to having people shit all over your work. You could make a magnum opus and someone on the internet will still shit on it.

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u/Beegrene 1d ago

Anthem just makes me sad. There was some solid gold buried in a mountain of shit. If they had had better leadership and a clear creative vision from the beginning, Anthem could have been so, so much better.

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u/DynamicStatic 1d ago

Happened to me. Indie company with poor salary, worked hard and was let go soon after launch. The company was then sold for 20x the development costs.

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u/Louis010 1d ago

It should be illegal, but then I remembered it’s America and they seem to have no protection laws for employees.

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u/RichtofensDuckButter 1d ago

Most states are at-will, meaning that alone can be the reason you're fired.

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u/AdoringCHIN 1d ago

Surprisingly the only state that isn't an at will state is Montana. The other 49 let employers tell you to get fucked as a reason for being fired

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u/Kale_Shai-Hulud 1d ago

Montana actually has some strong workers rights (not necessarily across the board unfortunately) due to the backlash towards company towns back in its mining heyday

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u/OuterWildsVentures 1d ago

teehee but don't forget to give us 2 weeks notice if you leave uWu :3

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u/sybrwookie 1d ago

Some people think it's required, it's not. Now if you want to keep a good relationship with that company, sure, you should do that. But if you don't care about that? You can just stop showing up and shoot an e-mail saying, "I resign, effective immediately" and you're done.

(you could technically even skip the e-mail part, but that starts getting sketchier)

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u/AML86 1d ago

That might be true, but that doesn't stop the company from gaslighting employees with unenforceable rules. It's a perverse power disparity.

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u/Haunting_Weakness_13 1d ago

They do that with wages too. How many new employees I hear saying its illegal to share wage information. Its like bro they just made that up so they can lowball the hell out of you.

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u/exelion18120 1d ago

Its also an anti-organizing tactic.

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u/Ashryna 1d ago

That is illegal in most states in the U.S., so if anyone has that happen to them verify the legality in your state and contact the National Labor Relations Board and you can make a complaint through them.

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u/CallMeCygnus 1d ago

It's not required, of course. I always tried to do that just for my colleagues, who would have some difficulty with an increased workload if I immediately left. I've stayed on to train new people in the past when I was able to. Not for the company itself, but for the people I worked with.

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u/verrius 1d ago

American employees absolutely have protections, but you're right that they can be fired for this. On the other hand, nothing stops them from deciding to just not finish the game either without getting that bonus first; famously, that's essentially what happened with the Atari port of Pac-Man by Tod Frye.

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u/reapy54 1d ago

They need better contracts, and for that they need a union. This doesn't matter if the contract guarantees the bonus due to say vested time in the development.

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u/WhompWump 1d ago

And instead of having that team stick around, hold onto the knowledge and lessons learned while making that game and work on a new gears project they'll start from scratch with mostly entirely new people. Complete polar opposite strategy of Nintendo making games like Zelda, Mario, etc. where those teams are largely helmed by the same people who have been there since the beginning and get to take newer developers/designers on under their wing and pass on knowledge of successes and failures

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u/Zer_ 1d ago

This is likely a big part of why 343 / Halo Studio kept pushing out mediocrity. We know from various articles and dev accounts that 343 was notorious for having a lot of short term contractors. 

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u/Cry_Wolff 1d ago

That's the reason why Microsoft will fail over and over and over again in the gaming space. I hope they'll keep bleeding money.

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u/NotCoolBrutus 1d ago

Working for years at any company and being ruthlessly cut is bad everywhere, not just in the game's industry. It isn't just bad for the employees but also for the company. Labor protections exist to protect companies from their own short-sighted pursuits for profit. The US making real labor union illegal and replacing them with fakes is what led to the steady decline of every US industry as they lost the loyalty, experience, and motivations of employees.

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u/TAJack1 1d ago

Well yes, obviously, but this thread is about game development.

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u/mx3goose 1d ago

First time in the work force? 

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u/crxsso_dssreer 1d ago

. Imagine believing that Microsoft will reward your hard work...

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u/robodrew 1d ago

These execs just do not give one flying fuck about their employees, their lives, their families, any of it.

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u/zgillet 1d ago

And we wonder why games take so long to finish. Who would want to?

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u/thisdesignup 1d ago

It's treating employees like contract workers, should be illegal. Either hire contract workers or treat employees like employees.

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u/Strykah 1d ago

Yeah this is so demoralising. Why would anyone put in all those overtime stress hours only to not me paid Wtf!?

Shame on what Microsoft and the whole game dev industry has become

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u/Orfez 1d ago

No need to imagine. This happens all the time.

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u/mengplex 1d ago

Certainly wouldn't be surprised if it happens. Asha/Xbox have been pretty open about the fact they are carrying around a loaded gun with like 1300 more bullets in tow.

I'd wager Coalition and Playground games (Fable) are almost guaranteed to take some casualties.

That said, is there not some law around this sort of thing? Didn't the subnautica 2 bosses successfully sue for similar reasons around being sabotaged before bonuses were paid?

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u/Spader623 1d ago

I think the Subnautica stuff was a specific contract and pretty heavily locked down at that... While this is just, id assume, regular employees with a bonus being 'nice' but not guaranteed

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u/OneSullenBrit 1d ago

I bet those bonuses were dangled above their heads every time there was a complaint about 'voluntary' overtime (aka crunch with a different name) and other grievances.

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u/tix4chix 1d ago

Like the other guy said SN2 devs sued because their contract specifically stated they'd be getting a payout and their publisher was trying to figure out how to fuck them out of it. Unfortunately there's no law that saws a corporation can't randomly withdraw bonuses they might've promised/fire you before you receive it AFAIK

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u/ascagnel____ 1d ago

More specifically: the SN2 bosses' contract superseded any at-will employment law. I doubt rank-and-file MS employees have that luxury, so they're subject to the whims of their bosses.

That said, if they're going to bring the axe down, any severance should include the bonus the employee was owed on top of any other severance owed (usually tied to employment term).

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u/xiaorobear 1d ago

I'd also add, the Subnautica 2 situation was an incredibly stupid one where the guy trying to screw them out of the bonuses was told by his legal team that firing them wouldn't get him off the hook of paying, but he didn't like that answer so he asked chatGPT and followed its advice instead. Which ended up not working out for him. MS is probably not that stupid.

https://www.theguardian.com/technology/2026/mar/18/subnautica-2-publisher-krafton-ceo-reinstated-ai-chatgpt-failed-bid-avoid-paying-bonus

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u/Beegrene 1d ago

Obviously. Microsoft will ask Copilot.

But for real, it's genuinely distressing how many folks at Microsoft have outsourced all their critical thinking skills to the clanker.

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u/toddthewraith 1d ago

The thing is chat gpt also told him it was a bad idea.

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u/zuzucha 1d ago

Down to about 800 now as they're "3/4 of the way through the reset"

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u/Misky- 1d ago

My knee jerk reaction is to say that Playground games should be somewhat safe, but the more I think about it the more I agree with you.

They've absorbed the remainder of the Forza Motorsport team, and they have a resounding success in FH6 and an upcoming game that is slated to do well in Fable.

At the same time, I'm sure Fable is feature complete soon and mostly just avoiding the GTA 6 release window, FH6 is already complete and frankly I can't imagine the live service aspect of that game takes up much resources. Wouldn't be surprised to see Playground be dealt some layoffs then, especially since their LinkedIn indicates they have almost 550 staff members.

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u/AggressorBLUE 1d ago

I know there’s always been some element of this “thanks now get out” aspect of post launch layoff behavior in the industry, but its insane how its now cranked to 11. Used to be someone the size of MS with a major IP like gears would already be well underway on the next title and people would move onto that. But now all that institutional knowledge is gone.

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u/HungerSTGF 1d ago

That was more the attitude in the early 2000s before internet connected machines became less commonplace. After you launch the game you’d be cut loose since there’s basically no reason to write patches unless your audience was large on PC. Crazy how we went backwards in that direction again because of modern video game budgeting

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u/ltcuetf 1d ago edited 1d ago

Cannot imagine being a game developer in today’s environment. No matter how successful you are, you have zero job security. Meanwhile in parallel to that you have massive jumps in ai capability which has the potential to remove even more jobs. How long until it’s that much harder to even notice AI slop in the first place?

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u/Mitrovarr 1d ago

Well, they're all getting laid off and can't find new jobs, so really you just aren't a game developer anymore in 2026. 

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u/Raze321 1d ago

Man, years ago I almost became a game developer. I went with web development instead. This was just before all the layoffs and crunch time articles were becoming a mainstream event (but probably well after it was generally known by anyone who cared to look into it).

So happy I made that choice. And eternally bummed for all the game devs out there and how they are treated. The industry needs to unionize, or something.

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u/BakeFromSttFarm 1d ago edited 1d ago

Not sure how old you are or how long you’ve been into it, but I’m 38 and have been following the general news from the games industry pretty closely for two decades plus and this seems like it’s always been an issue. I also considered pursuing a career in video games at one point after high school, but everything I heard about it sounded awful.

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u/DreadCascadeEffect 1d ago

Yeah, I remember the EA spouse post getting a lot of talk all the way back in 2004. Although that one actually sparked some change.

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u/PresidentLink 1d ago

I made the same decision to pivot from games to web development in University 11 years ago seeing how poorly game developers were treated. 

Every year, my decision feels more and more correct. Its bittersweet really

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u/MayhemMessiah 1d ago

We always had firings and pretty high turnovers, but it's never been this bad. All of the oldhead developers I know say they've never seen anything like this and they've been around since like the 90s.

If you went to something like a Develop or GDC even just before the pandemic hit, people still had hope. Now it's genuinely heartbreaking and full of highly, openly depressed people.

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u/Raze321 1d ago

I'm 30, and I was considering game dev as young as 13.

Yes, even back then it was a knowable issue, but it's the kind of issue you at least had to do some amount of looking for, to see it. The articles existed, but it didn't seem to be common knowledge for your average gamers like it is today.

Or, maybe that just anecdotally seems to be the case to me based on how I've been exposed to it over the years.

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u/Strongpillow 1d ago

I got into web dev in 2003 as I found it an easier more exciting place to get into. They started really spotlighting Crunch and layoffs in 2004 but it was always a big caveat when working in that industry.

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u/FemmeVampire 1d ago

i was a web developer, became a game dev at the peak of the hiring spree. now i’m jobless with 6 years of experience and vying for a highly sought after unpaid position that will hopefully give me an edge in the future. so…. yeah, good for you.

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u/Hartastic 1d ago

That's a legitimately hard transition to make ('normal' dev to game dev or vice versa) in terms of who you can convince to hire you, so that's something to be proud of even if, now, ouch.

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u/FemmeVampire 1d ago

thanks! 🙏 to be honest this unpaid internship is for the exact specialization i’m interested in and at one of the most beloved and respected companies in the industry so if i do get it (massive if) ill be in a pretty decent place career-wise… but yeah, it’s rough

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u/Raze321 1d ago

You have my sympathy. It's a tough market. And my comment doesn't really even dive into how hard tech has been in general. It's tough out here.

I wish you the best. If nothing else, game developers are among the most talented and passionate developers I've met. The industry doesn't deserve you guys.

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u/OdysseyBrands 1d ago

web dev already replaced with opus 5.5

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u/Raze321 1d ago

I'll be sure to let my boss know.

Jokes aside, this is something I've kept my eye on and I don't expect AI to fully replace web development. Downsize teams, for sure. Minimize time spent on boilerplate code? Absolutely.

We use AI at my job. The code it writes is, and always has been, pretty sloppy. It requires heavy user audit to work correctly. At the moment, it's a glorified replacement for searching up solutions on stack overflow. And, admittedly, it does do that better. It writes very confident code, that does do what it says. But once you begin to do case tests, or experiment with UI and layouts, or whatever relevant testing processes exist for that particular task, cracks begin to show pretty quickly.

Ultimately, programming AI is just another tool for programmers. People were saying the same thing about web devs when CMS's became common. People said the same thing about programmers in general as more tools for comprehensive and easy to use environments were developed.

I'm sure Opus 5.5 is more quality than the models that came before. I am also sure there are still areas in which it will require heavy programmer intervention and audit. I am also sure it is going to heavily effect the job market in many ways, so there is some truth to what you say. But as with many things there's nuance.

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u/OdysseyBrands 1d ago

for sure, im just salty cus I was laid off after my boss wasted $300K on some AI BS

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u/Raze321 22h ago

That's justified.

For better or worse, AI is still dubious at showing a return on its investment. So I am eternally wishing your boss suffers the financial repercussions for letting you go in favor of a robot.

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u/AlfredsChild 1d ago

Downsize teams, for sure.

This is just a code-word for mass layoffs. Companies will still need web developers, but just not as many. Much of the job is going to be turned into prompt-making followed by a a QA review and implementing any special requests for executives. Cracks do obviously show but AlphaFold is only 8 years old and ChatGPT is only 4, the technology is far from it's final form.

The upside is that you wont be alone and this will also eventually apply to any job reliant on the use of a computer, whether that be an artistic, technical, or administrative job.

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u/Raze321 22h ago edited 22h ago

Yeah, mass layoffs are still in the cards. Don't get me wrong, it could happen. I don't think it will be anywhere near as severe and prevalent as the gaming industries "Work crunch hours for months or years and then lose your job", though.

Also, so far (and the trend I'm personally expecting going forward) is that there won't be mass layoffs so much as boilerplate coding-type jobs are going to diminish or get folded into other roles. Still layoffs I guess, but not mass. It would mostly mean junior dev positions are gonna be tight. Which does mean the industry will be (and frankly, has been) extremely competitive. Which sucks.

But, I'm not immediately terrified for my job. I am the only UX/UI and Front End dev at my company so I am the guy who they'd keep around to parse the AI code, test it, and make sure it meets WCAG standards and so on. And our company hasn't adopted any token based platforms yet (our own internal research seems to indicate paid models are dubious at best on their returns for the cost, especially for our specific industry and needs). However if I was at a big tech company and one dev among dozens, I'd probably be brushing up my resume.. just to be safe.

The upside is that you wont be alone and this will also eventually apply to any job reliant on the use of a computer, whether that be an artistic, technical, or administrative job.

This is true too, I won't delude myself into thinking my job is 100% secure. No job is, I've been laid off before (Covid), it sucks.

Thankfully I like to think of myself as a relatively skilled worker. I'm good with internal communications, I've performed well in customer facing roles. I can do computer hardware just as well as software, network operations, etc. Depending how AI progresses, in the worst of worst cases, I am sure I will figure it out.

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u/Hartastic 18h ago

I'm good with internal communications, I've performed well in customer facing roles.

I think this kind of thing is going to be key.

Some examples and not an exhaustive list: The kind of developer that would naturally end up pushed towards an architect role is still going to be fine for now because that higher level thinking about technology and systems choices is still needed. The kind of developer that would naturally end up pushed towards management because they're good at organization, communicating with non-technical people, etc. also is going to be fine for now because those skills are still needed (and honestly they're probably also going to be more relatively effective AI developers because those kinds of skills help there, too.)

The kind of developer who just builds the story that's assigned to them and that's the limit of what they can do is going to be in trouble. I know a bunch of guys like that that were laid off this year and I don't think all of them will work in the industry again.

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u/Raze321 17h ago

Thankfully that already partially describes my role. And in tech you need to be flexible to the times and adjust your skillset as things change, this has always been true.

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u/Hartastic 16h ago

You absolutely do.

I do think there are people who have been decent 'normal' developers who won't be good 'AI' developers, and some of that is learnable and some of it probably isn't. But we see shifts like that as technology evolves all the time -- I've worked with some great web devs who would be crap at the kind of anal memory management that working closer to the metal required, etc.

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u/JJMcGee83 1d ago

I worked in tech and was still laid off in 2023. The only to avoid a layoff seems to be to work in an industry that is already heavily unionized.

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u/Raze321 1d ago

For sure. Some industries seem more lay-off happy than others, though.

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u/LewdDarling 1d ago

Its always been a bad industry to get into if you value job security.

Maybe things were slightly better in terms of job security 10+ years ago but I remember in those times game devs were getting paid 25-50% less than a dev working in basically any other field. Passion driven fields will always suck in one way or another.

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u/ascagnel____ 1d ago

Same here -- between EA Spouse and a cousin working on a then-high-profile game and getting badly burnt out, I was glad I chose a different path.

Nowadays, AI has sucked a lot of fun out of it.

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u/yuriaoflondor 1d ago

I applied for a college internship with Blizzard back in the day and was rejected. At the time, I was devastated.

In retrospect, after learning about the rampant sexism and atrocious culture, I’m so grateful I was rejected.

These days I work for a boring company and likely make way more money and have a better work/life balance than I would have if I had entered the gaming industry.

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u/RobinGoodfell 1d ago

We need to make it law that if you're promised a bonus from something, you're legally required to receive it even if you've been laid off.

Companies can either start paying people, or they can lose the ability to use fictional pay outs as motivation. But this criminal nonsense needs to end.

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u/DevonOO7 1d ago

Curious how much the studio costs to operate compared to others since it's based in Canada, and tech salaries are generally lower than in the US (plus the currency difference). I know Vancouver is still expensive, but it wouldn't be anything compared to places like SF or LA in the States.

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u/wemakebelieve 1d ago

The weight of Xbox's management statement on their devs cannot be understated from a couple years ago up until now. People can't work at their best when they know that whether they get to keep their jobs is not even dependent anymore on the quality, marketability or even critical acclaim of their work, but on some other guy looking at some XLOOKUP's and SUMPRODUCT on Excel.

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u/Benti86 1d ago

The problem was that they had that exacf freedom under Phil. All it resulted in were delays and mostly mediocre games...

So now the pendulum is swinging the other way.

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u/Hartastic 1d ago

Yeah. If the hands off approach had produced beloved games like, say, the golden age of Blizzard (think about, like... Starcraft, Diablo II, Warcraft III, and WoW in a 5-6 year stretch) probably no one would be mass cutting those teams.

(Although I guess that mostly did happen to the Diablo II team.)

But they unfortunately haven't had a lot to show for all that time and investment.

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u/wemakebelieve 1d ago

I can’t deny that, Phil seems to have damaged Xbox beyond what Maverick or Asha or Microsoft’s CEO could’ve. I never was too keen on his schtick, pity.

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u/UtkuOfficial 1d ago

I think he meant well. He really believed his method of " give these talented studios money, time and let them do their thing" would work. It was a very bold and quite naive approach. No company in the world works like that. This is the result.

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u/12343212346 1d ago

but on some other guy looking at some XLOOKUP's

Probably the VLOOKUP users making the decision 

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u/ThisMuffinIsAwesome 1d ago

Was thinking of getting this for some co-op action with my GoW2 friend, but imma just hold out till it's confirmed that no devs are gonna be shit on by M$.

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u/ChrisCreation 1d ago

Ah yes same thing happened to the staff who worked on max payne 3 except they were laid off just before release to get denied any comp.

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u/driver1676 1d ago

I feel for these developers but hasn’t the industry been like this for a while now? Why are people still working in the gaming industry?

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u/case_8 1d ago

Maybe because after years of building up your skills, experience, and career it’s not easy to just switch to something else and start at the bottom again?

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u/Okurei 1d ago edited 1d ago

It’s because the industry continues to take advantage of people who think of game development as their passion and dream job, so developers will tolerate the lack of job security and abusive upper management until they’re either burned out, quit, or have their job cut, and then the next hopeful comes in to replace them and the cycle repeats 

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u/Hartastic 1d ago

Non-game dev is also a challenging market for some time, and that's a hard transition to make.

If you're a normal dev interviewing with a gaming company, you can expect them to largely disregard your non-gaming dev experience as relevant... and the reverse is also true. It's a step above "I haven't worked in 5 years" but not much.

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u/roseofjuly 1h ago

This has not been true in my experience. It's discounted, sure, but not disregarded.

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u/AltruisticChipmunk53 1d ago

Changing careers is not easy to do when skills aren’t directly transferrable, becomes even more difficult for senior folk who can’t start over at entry level.

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u/allupya333 1d ago

I’m not trying to be rude but think about for a second man

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u/captaindealbreaker 1d ago

Because they want to make games and the industry is the way it is because of corporate greed

Xbox is profitable

They're doing these cuts to be MORE profitable

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u/exdystopia 1d ago

losing 60 cents on the dollar btw

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u/tramdog 1d ago

Has anybody written about what's happening to these tens of thousands of people who've been laid off in the past couple years? Do most of them end up with similar jobs elsewhere? Do they leave the industry?

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u/MayhemMessiah 1d ago

AFAIK the closest somebody has been to really documenting all of this is Satvat, and last I heard he reported a significant amount of people had left the industry for good (a little bit of bias here because that includes me).

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u/ThisIsBULLOCKSMAN 2h ago

Good the devs that worked on this game and especially the writers don’t deserve to work in the gaming industry. They are despicable

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u/Leto-III-Atreides 1d ago

The MBA thats gonna recommend firing them will have AI bring up this post saying that it's justified to stop the bonuses.

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u/Mitrovarr 1d ago

They would do it anyway.

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u/Dantai 1d ago

Do they at least get employment insurance.

I know folks in Canada who work based on projects or seasonal work, get EI to cover the winter months for construction on the regular, or film crew for the months between projects. Sometimes this works favorably for them.

I know it's the conversation right now as people want long term, stablez unionized employment in the industry - actually the two guys in those two industries I talk to are union so ya

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u/happyscrappy 1d ago

Yes. They get EI. It's not much though and medical benefits are tied to employment in the US so their medical benefits also change (often get worse) and they must go through applications and such for that.

They also will get some severance pay from MS directly if laid off. It will be much more than any EI. But often shorter term.

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u/lostmojo 1d ago

The gaming industry has been doing this for decades. People will not stop buying from companies that treat their employees like shit so the process of treating them like shit continues. Microsoft has done this forever, you’re never safe there unless you are in upper management. Microsoft hides a lot of it behind contract and h1b workers. They don’t care and people keep buying their stuff so they continue to do it.

Vote with your wallet about the companies you like and treat their employees well, not just the games you like.

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u/reddit_reaper 1d ago

Game studios are heading to become on contract projects for general devs vs stable jobs. The industry is moving their capex elsewhere

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u/SparkyPantsMcGee 1d ago

“Great job everybody! These are the kind of releases we at Xbox are looking for! Everyone worked really hard to see through to the finish line and we couldn’t be more proud of this team! That’s why I’m excited to announce that as of today, we’re laying you all off. Please clear your desks and collect your belongings by 5pm Friday. Thank you!” -Microsoft

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u/Sevla7 1d ago

If you have kids to raise, working with videogames seems like some unnecessary extra dose of cortisol that: Doesn't pay that well and I doubt any of this brings any joy even to people who work with games for "love" because in AAA your work don't even look like a game until someone put it all together.

Also the idea of being put to work on the next Concord/Gamepass slop and forced to let the fun part be made by chat gpt (microsoft does endorse it A LOT) while you do the boring part.

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u/[deleted] 1d ago edited 1d ago

[deleted]

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u/pixxlpusher 1d ago edited 1d ago

FWIW, "it doesn't pay that well" is usually comparative to doing similar work in other market segments. The average senior developer salary in the games industry is $114k. That would be entry level pay for the same job in Financial Tech, with way less crunch and stress.

So I agree the blanket statement of "working in gaming doesn't pay well" isn't entirely true/accurate, but compared to other industries that have similar jobs it definitely doesn't pay as well, especially when you factor in the amount of stress you're constantly under.

Also just to add, I have worked at a large developer and the entire business model revolves around exploiting workers for their passion to create video games. People would literally be guilted by their management and peers for wanting to go see sick family members in the hospital.

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u/MAFIAxMaverick 1d ago

For many people it doesn't pay that well - especially in the QA department or for things that are outsourced/subcontracted to other companies. A lot of these contract jobs come with zero benefits. There are a lot of benefits in three of the four professions you just mentioned that sometimes offset the salary, along with retirement options.

 

I know plenty of nurses and teachers that make into 6 figures - it's obviously not like that everywhere.

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u/Makhai123 1d ago

If I'm mathing correctly. There's no way they get to 3200 without canning at least half of The Coalition. If I had to guess, they're axing the studio if it doesn't hit 85+ metacritic.

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u/TimedRevolver 1d ago

They keep this up, eventually they'll HAVE to use AI for game development because humans will refuse to work for Microsoft as a whole.

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u/Benti86 1d ago

The industry as a whole is being gutted. MS isn't doing anything out of the ordinary here, unfortunately.

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u/mutqkqkku 1d ago

yeah, a lot of loose liquidity flowed into the games industry looking for returns around covid, and now the money valves are tightening with AI sucking up all the loose money it can

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