<ul data-eligibleForWebStory="false">Around 9,000 people were reportedly laid off at Microsoft and Xbox this week, leading to game cancellations and studio closures.The layoffs signal significant challenges for the future of Xbox and raise questions about the platform heading into 2026.The impact on employees and the broader implications for Xbox are discussed, along with the potential for recovery.For more insights on the evolving world of Xbox, tune in to Unlocked, IGN's weekly Xbox show available on various platforms.