“Dreams Canceled Overnight”: EA Japan Slams Microsoft Over Sudden Layoffs and AI Shift
The gaming world was hit hard this week after Microsoft laid off 9,000 workers in one of its biggest job cuts yet. Although not all of them were from Xbox and gaming, the effects there have been massive.
Major studios were shut down, games were canceled, and longtime developers were forced out. It shocked players and game creators alike, and it didn’t take long before voices inside the industry started speaking out.
One of the strongest reactions came from Sean Noguchi, the President of EA Japan. He didn’t hold back. On social media platform X, he shared his thoughts in a detailed post, originally written in Japanese. “In recent years, foreign-affiliated companies have become more inclined to seek short-term results from large-scale investments, and there are many cases where they change direction to meet shareholders’ expectations before enough time has passed. We believe this incident is a result of such a structure.”
「リストラ（Restructure）」という言葉には、再構築や効率化といった前向きな意味合いが込められることが多く海外では比較的曖昧に使われがちです。しかし日本においては「リストラ＝解雇」として非常にストレートに受け止められその影響の大きさがより強く意識されます。… https://t.co/jYFwnpuehe
— 野口ショーン (@SeptillionGames) July 4, 2025
Noguchi pointed to a growing trend in the industry, focusing too much on profit and not enough on people. In Japan, he said, calling it “restructuring” doesn’t soften the blow. It’s still layoffs, and the damage to morale and creativity is just as deep.
“What supports the game industry are the creators and staff who have been working sincerely on development,” he said. “As someone in the same industry, I feel a deep sense of pain from this decision. The regret that something built over a long period of time will not be released to the world, and the reality that gamers who were looking forward to it will never even have the chance to experience it.”
Noguchi’s words reflect what many developers are feeling. Speaking with Engadget, one anonymous Xbox developer described how bad things were behind the scenes. “I’m personally super pissed that Phil’s email to us bragged about how this was the most profitable year ever for Xbox in the same breath as pulling the lever,” they said. “It’s hard to feel proud about that.”
The layoffs came on July 2 and hit across the board, including 830 people in Microsoft’s home state of Washington. Xbox teams like Rare, Turn 10 Studios, ZeniMax Online, and even Blizzard saw major cuts. Studios like The Initiative and Arkane Austin were shut down. Rare’s Everwild and the Perfect Dark reboot were both canceled. ZeniMax’s longtime president Matt Firor left after 18 years. Blizzard is pulling the plug on Warcraft Rumble. The damage is everywhere.
While Microsoft hasn’t said exactly how many layoffs hit Xbox, they claim it was less than half. Still, Xbox is only a small part of the company. For many who lost their jobs or had their projects scrapped, that statistic doesn’t matter.
Microsoft has shifted its focus toward artificial intelligence. CEO Satya Nadella said at Meta’s Llamacon event in April that about 30% of Microsoft’s code is now written by AI. Activision has even admitted it’s using AI in Black Ops 6. Inside the company, developers say AI tools like Copilot are no longer optional. According to another anonymous developer, “They’re trying their damndest to replace as many jobs as they can with AI agents.”
For the people who spent years working on games that may now never see the light of day, this AI-driven future feels like betrayal. Some see it as trading creativity for convenience, or even humanity for profit.
Microsoft’s revenue numbers remain strong. The company brought in $25.8 billion in the first three months of 2025, with Xbox content and services up 8%. But those numbers don’t reflect the real cost, the canceled ideas, the broken teams, and the dreams that won’t come true.
As layoffs continue to shake the gaming industry, voices like Noguchi’s are a reminder that behind every decision are people, stories, and lost futures.
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