<ul data-eligibleForWebStory="true"><li>Microsoft's gaming division is reportedly bracing for another mass layoff as Xbox shifts focus from console hardware to Windows gaming and PlayStation 5 exclusives.</li><li>Another round of layoffs, the fourth in 18 months, is expected by the end of the fiscal quarter, impacting various Xbox teams and studios.</li><li>The recent cuts started in January 2024 with layoffs across Bethesda, Xbox, and Activision Blizzard, leading to studio closures and impact on developers.</li><li>The ongoing layoffs follow Microsoft's acquisition spree, including buying Activision Blizzard for $70 billion, making Xbox the largest gaming content publisher.</li><li>Microsoft Gaming CEO Phil Spencer has defended the cuts as necessary for a profitable business to continue investing in Xbox and the gaming community.</li><li>Trade-offs have included bringing Xbox games to PS5, raising game prices such as The Outer Worlds 2 at $80, and potential future increases in Xbox Game Pass Ultimate pricing.</li></ul>

Report: Xbox Bracing For Another Mass Layoff

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