Bernie Sanders, a Vermont senator and self-described democratic socialist, said Microsoft's latest xbox The layoffs represent increases in Xbox hardware prices as the company cuts profits, executive compensation, and cuts. It's unclear whether Sanders fully accounts for the broader factors affecting the gaming industry, such as rising hardware costs due to the RAM crisis, but the scale of Xbox's restructuring is now attracting attention beyond the gaming community.
The Xbox layoffs have quickly become one of the biggest and saddest gaming stories of the year. Microsoft confirmed plans to cut about 3,200 jobs related to its gaming business during this financial year, with about 1,600 employees affected on July 6 and a further 1,600 jobs expected to be cut in the coming months. The restructuring also saw Double Fine (Cruel legend, palanquin) and forced games (We Happy Few, South of Midnight) Ninja Theory left Xbox and became an independent studio (Senua) and Undead Labs (State of Decay 3) has moved to another publisher, and Arkane is reportedly exploring strategic options with support from the French government. Giant gaming companies such as Bethesda (Fallout, Elder Scrolls) layoffs are coming, which shows just how widespread they are.
Microsoft partners with French government for Arkane's future
Microsoft is officially parting ways with Arkane, but the studio is working with the French government to keep its doors open.
Sanders addressed the layoffs in a social media post, arguing that Microsoft's financial performance makes it difficult to justify job cuts. He wrote, “Last year, Microsoft earned $101 billion in revenue, received a $12.5 billion tax break, and paid its CEO $96 million. This year, Microsoft raised the price of the Xbox by $150 and eliminated 3,200 jobs.”
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Some of Sanders' criticism referenced Microsoft's recently announced price increases for Xbox hardware. Starting August 1, the company will increase the price of the 512GB Xbox Series X/S model by $100 and the 1TB model by $150. Additionally, Microsoft is discontinuing the 2TB Xbox Series X/S configuration after current stock sells out. These price increases follow broader cost pressures affecting the gaming industry. Across hardware manufacturing, companies continue to cite higher component and memory costs.
Sanders concluded his piece by saying, “Don't say corporate tax cuts create jobs. They never trickle down.” The statement reflects his long-standing criticism of trickle-down economic policies and his belief that corporate tax cuts do not necessarily lead to workforce growth. Regardless of where people stand politically, Sanders' comments highlight just how noticeable Microsoft's restructuring of the Xbox has become.
