Gaming Industry Correction Underway: Layoff Bloodbath Continues

2 months ago
2

In this video, we dive deep into the ongoing "gaming industry correction" hitting hard in 2025, with massive layoffs signaling more pain ahead for devs, publishers, and gamers. From Microsoft's 9,000 cuts in July 2025 (4% of its workforce, per Bloomberg) axing studios like The Initiative and canceling projects like Perfect Dark and Everwild (per GamesIndustry.biz), to Ubisoft's flops like Skull and Bones ($200M loss) and Star Wars Outlaws (1M sold vs. 3M expected), the bubble is bursting. We explore gamer reactions on X and Reddit—rage over canceled games, fears for Xbox's future (with only 29.7M units sold vs. PS5's 75M, per IGN), and calls for a return to quality over live-service greed. With 35,000 gaming jobs lost since 2022 (per Wikipedia) and EA's Dragon Age: The Veilguard underperforming (1.5M sold, per PC Gamer), is this the end of AAA bloat? Are more layoffs inevitable, or can indie devs save gaming?

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