Xbox is planning further layoffs across October, November, and January as part of an ongoing effort to cut 3,200 employees total, according to Fortune magazine. The company has already conducted two rounds of mass layoffs this year. Fortune cited people familiar with the plans while noting such timelines can change.
Xbox management chose to spread the layoffs across multiple waves, which has left staff demoralised, Fortune reported.
An overhaul of Xbox Game Pass is also in the works. The redesign will let players choose features a la carte, including add-ons for console-only games, cloud gaming, and multiplayer on a tiered structure, Fortune stated. This represents a shift under new CEO Asha Sharma, who has been less committed to Game Pass than previous boss Phil Spencer.
Xbox is developing a next-generation handheld aimed at a 2027 holiday season launch. The company's next console is not expected until 2028. Internal Xbox projects cite a production cost between $1,200 and $1,800 per console, though Xbox could subsidise the retail price. Behind-the-scenes conflict between Xbox and Windows divisions exists over which operating system the handheld will run, Fortune reported.