2025 has not been a good year forXbox, with multiple troubles plaguing Microsoft that only seem to get worse as the year continues. From canceling highly anticipated game projects to massive layoffs, Xbox seems to suffer a new controversy every week. With multiple problems and a high amount of criticism, the future of Xbox is unclear going forward.
The unfortunate news surrounding Xbox comes at a time when concerns about the Microsoft-controlled group are at their highest.Multiple disappointing launches have failed to deliver a competitive exclusive, with the concept of exclusivity at all dying from Xbox entirely. With theGame Pass model on the declineas well, it is hard to see what changes Xbox needs to make.
Huge Layoffs And Project Cancellations Have Created Huge Fan Concerns
The most prominent Xbox news from 2025 is the nearly 9,000 employees laid off from various studios from under the company’s umbrella. This has led tothe closure of several game development groups within Xbox, including The Initiative, the team behind the highly anticipatedPerfect Darkreboot. Other projects, like the Rare-developed action-adventure titleEverwild, have also been canceled following the layoffs.
Several long-time leaders from the team behindHalo, arguably Xbox’s flagship series, were also let go from the 2025 wave of layoffs. Withno newHaloannouncements or information, this puts a highly regarded franchise in a concerning place.
To make matters worse,Xbox received a ton of backlash regarding the price of an upcoming title- Obsidian’sThe Outer Worlds 2. Originally set at $80, fan feedback has made Xbox relent, reducing the price to $69.99 following the negative criticism. While this may be a win for fans, it shows a lack of trust Xbox has in its own products, and its inability to keep an audience invested in the games they publish on their platforms.
This backing down from Xbox was a sign of defeat, betraying a much larger lack of confidencethe company has in the gaming space. Its recent console, the Xbox Series X|S, sold far less than the PlayStation 5, and has recently been blown out of the water by the Nintendo Switch 2 in sales.
With Xbox’s huge shift toward a digital marketplace through Game Pass, that system has been declining recently, especially through the Day 1 program.The aversion to selling games and instead relying on a subscription-based service might work well for players, but some experts have stated how it has devalued Xbox IPs and ruptured game salesto lead to the layoffs seen in 2025.
Nintendo & Sony Are On Solid Ground
Whileneither Sony nor Nintendo are perfect companiesby any means, they have a much stronger foundation. I believethis is due in part to the exclusivity both companies use with extremely strong gamesthat have come out over the last couple of years. Just in the last two years, games like the ones below have given players more than enough reasons to buy either a Switch 2 or PlayStation 5 over an Xbox:
With even more titles in the future, like Sony’sGhost of Yotei, these companies have much stronger roadmaps than Xbox.Planned exclusives might be annoying for players, but they do drive salesfor Sony and Nintendo consoles the most.
The main problem with Xbox is the lack of incentive players feel to invest in its brand compared to others.Sony and Nintendo have consistently delivered on-time products with fewer delays and far better communicationoverall. This has built up a level of trust within their fans that Xbox has lost through multiple long-term game delays, lack of change, and a decline in focus on making exclusive games that draw players in.
The Future Of Xbox Is Still Up In The Air
Restructured Practices Could Build Xbox Back Up
For now, the layoffs and game cancellations will lead to consequences later, as player trust has been broken time and again by multiple Xbox studio closures.The false promises and lack of developer support from Xbox have alienated players far too often, but some promising titles could change things around.
Upcoming games likeGears of War: Reloaded, the aforementionedThe Outer Worlds 2, and arumoredHalo: Combat Evolvedremastermight muster some success for Xbox. However, the continuing negative effects of Game Pass might make it difficult for any one game to stand out.Day 1 availability on Game Pass might disrupt any successful sales for Xbox, especially with the company in such dire need of a big win.
Some information following the layoffs at Xbox suggested that the company was pushing to fill or replace more game development jobs with AI. While purely speculative, this could be a concerning trend that leads to further controversy surrounding Xbox.
Theprioritization of"high-impact games"from Xbox may lead to far too high expectations for many of their new IPsor other upcoming games. This could lead to multiple delays as games take longer to develop, and eventual products being pushed too quickly, resulting in broken titles that need to be fixed post-release. An emphasis on only remakes or remasters of existing IPs Xbox clings to could also frustrate fans who wish to see new entries or ideas.
It will likely be some time before Xbox can regain any sort of goodwill, with the company’s future uncertain at best. While 2025 is undoubtedly the worst year I’ve seen forXboxin a long time, some simple changes to company practices could turn things around in 2026 and beyond.
