On July 2, Microsoft cut 9,000 jobs across the company (via Bloomberg) and while the exact number of those layoffs that came from the Xbox division is unclear, the impact is clear. Some studios were closed, and several games were canceled. Xbox head Phil Spencer, who has been leading the Xbox division for over a decade, leading the vision of the current Xbox strategy, said that the job cuts were necessary for the future of Xbox. While the reason for the layoffs hasn’t been confirmed, Microsoft’s latest earnings report confirms that revenue was up across the board, and it continues to be one of the most profitable companies in the world. The future of Xbox looks bleak, and these cancellations will also impact the cadence of Xbox Game Pass releases, but more importantly, the loss of hundreds of talented developers and the projects they have spent years working on is what matters most.