Xbox is reportedly going to miss the 3,200 layoff target. Microsoft said “approximately” 3,200 gaming jobs through FY27 last July. Windows Central’s Jez Corden says sources now expect the total to fall short. They’re moving people into other departments and spinning studios out instead. Double Fine and Compulsion are independent again. Undead Labs is going to another publisher. Two deals for Ninja Theory fell through. Consultation on a closure has started. Matt Booty this week: 268 more cuts, and they’re “roughly three-quarters of the way through.” Nobody’s saying by how much the 3,200 misses.

Xbox reportedly plots second layoff wave this week, with Blizzard and Halo Studios both in the firing line. 🔗 In July, CEO Asha Sharma told staff she would eliminate 1,600 roles by the end of the fiscal year, in addition to the 1,600 jobs cut that same month. What wasn't known was when the second half would land. The answer, apparently, is now.

Xbox could be preparing for another round of layoffs, with a new report claiming hundreds of employees could lose their jobs and several studios may be consolidated. Microsoft continues to restructure its gaming business and review how its studios operate. Consolidating studios could mean combining teams or reorganizing development operations, although the specific plans remain unclear. Asha keeps cleaning Xbox

Xbox started tagging Xbox One discs in 2011. That’s what disc-to-digital runs on now. Slot the disc, get a digital copy. Same idea they walked back at Xbox One launch. Not every disc works. Early presses might not have the ID. Damaged ones can fail too. Publishers have to opt in. Ubisoft games started showing up. Sony’s ending PlayStation discs in 2028. This isn’t something they can copy unless they already tagged theirs.

Xbox cut 3,200 jobs and sold studios, then called Fable “vital to the DNA of the platform. Ralph Fulton says that line protected Playground through a 10-year cycle. Same years: Double Fine, Compulsion, Ninja Theory, and Undead Labs get pushed out. Lionhead, the studio that made Fable, was already closed. DNA is not a value. DNA is whichever logo still photographs well after the layoffs. Xbox didn’t save Fable because it loves RPGs. It saved the one game it can still point at when people ask what Xbox even is.

Xbox is expanding its partnership with video game industry legend Hideo Kojima. The “Death Stranding” and “Metal Gear” creator has switched the publishing partner on his upcoming game “Physint” to Microsoft’s Xbox from its original home at Sony’s PlayStation.

Xbox is currently experiencing a major outage affecting both PC and consoles. Microsoft has acknowledged sign-in issues, with players reporting problems accessing their accounts, services, and games that require Xbox authentication. Microsoft says it’s investigating the issue.

Xbox is rolling out its Disc-to-Digital Licensing test to select Xbox Insiders today. The feature can convert eligible Xbox One and Xbox Series X game discs into digital licenses, >Xbox Play Anywhere games are supported >Multi-disc games only use the first disc for the license >Some Ultimate Editions and similar releases can include their on-disc add-ons The license stays connected to the physical disc, so selling or giving away the disc can affect access later.