Layoffs have been a constant drumbeat in gaming industry news since 2022. Even if the cadence of layoffs seems to have slowed in 2026, the severity of those cuts has not lessened. In July, Microsoft made 1600 staff redundant as part of its great reset , and promised investors they would let 1600 more staff go in the next 12 months. Cuts like those and the ongoing economic pressures plaguing the industry – rising debt rates, a cost of living crisis, and a memory shortage that is making every aspect of making and playing video games pricier – should have the head of any large studio examining their plans for the future.
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Rock Paper Shotgun