Vermont senator and self-described democratic socialist Bernie Sanders has weighed in on Microsoft's latest. Xbox In response to the cuts, layoffs pointed to company profits, executive compensation, and Xbox hardware price increases. Whether hardware costs have increased due to Sanders' broader factors affecting the gaming industry, such as the RAM crisis, is unclear, but the scale of Xbox's restructuring has now attracted attention beyond the gaming community.
Xbox layoffs have quickly become one of the biggest and saddest gaming stories of the year. Microsoft has confirmed plans to cut about 3,200 jobs linked to its gaming business through the current fiscal year, with about 1,600 employees affected as of July 6 and another 1,600 expected to be cut in the coming months. The restructuring also reshaped Xbox's first-party portfolio, including Double Fine (Cruel story, kiln) and the constraint game (We Happy Few, South of MidnightLeaving Xbox to become an independent studio, Ninja Theory (Senua) and undead labs (State of Decay 3) is moving to another publisher, and Arcane is reportedly exploring strategic options with the support of the French government. Even gaming giants like Bethesda (Fallout, The Elder Scrolls) were killed off, showing how widespread these works are.
Microsoft is working with the French government on Arcane's future
Microsoft is officially parting ways with Arcane, but the studio is working with the French government to keep its doors open.
Sanders addressed the layoffs in a post on social media, arguing that Microsoft's financial performance makes it difficult to justify workforce cuts. He writes, “Last year Microsoft made $101 billion in profits, got $12.5 billion in tax breaks, and paid its CEO $96 million. This year, it raised the price of Xbox by $150 and cut 3,200 jobs.”
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Part of Sanders' criticism referenced Microsoft's recently announced Xbox hardware price hike. Starting August 1, the company is increasing the price of 512 GB Xbox Series X/S models by $100, while 1 TB models will increase by $150. Microsoft is also discontinuing the 2 TB Xbox Series X/S configuration once current inventory is sold out. Those price increases come after months of broader cost pressures affecting the gaming industry, with hardware manufacturing companies continuing to cite higher component and memory costs.
Sanders ended his post by writing, “Please don't ask me to create jobs with corporate tax breaks. It never goes away.” The statement reflects his longstanding criticism of trickle-down economic policy and his belief that corporate tax cuts do not translate into workforce growth. Regardless of where people fall politically, Sanders' comments underscore just how visible Microsoft's Xbox restructuring has become.
