The Fallout of Xbox’s Massive Layoffs - Unlocked Clips

As expected, layoffs at Microsoft and Xbox did happen this week, and they were unbelievably brutal. Approximately 9,000 people reportedly got laid off, multiple games were canceled, and entire studios were shut down. What does this mean for the future of Xbox? We sort through the damage, discuss the human impact, and debate what’s next for the platform heading into 2026. Plus, how did we get here, and can Xbox bounce back?