June 2025 was a month of highs and lows for the Xbox brand. While the annual Xbox Games Showcase generated significant excitement, the subsequent layoffs and studio closures left the gaming community in shock. Microsoft's decision to cut nearly 9,000 jobs, shut down a major Xbox game studio, and cancel long-awaited projects has cast a shadow over the brand's future.

The repercussions of these layoffs are still unfolding. The Initiative, a studio working on the Perfect Dark reboot, has been closed, and projects like Everwild have been scrapped. Even established studios like Turn 10, known for the Forza series, have reportedly been reduced to support roles. This drastic shift comes just weeks after Microsoft CEO Satya Nadella's optimistic tweet about Xbox's future, which now feels bitterly ironic.

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Nadella's tweet, posted after the Xbox Games Showcase, read: 'New games. New hardware. And new ways to play. As Xbox turns 25 next year, the future of gaming is just getting started.' At the time, fans welcomed the message, but in light of recent events, many are questioning Microsoft's commitment to its gaming division.

The backlash has been swift. Fans are expressing frustration on social media, particularly about canceled games like Perfect Dark and Everwild, which were promised as day-one releases on Xbox Game Pass. The trust in Microsoft's ability to deliver on its promises has been severely shaken.