Bernie Sanders Weighs In on Xbox Layoffs, Exec Pay and Price Hikes
Vermont Senator Bernie Sanders, a self-described democratic socialist, has spoken out about Microsoft’s recent Xbox layoffs, arguing that the company’s strong financial results and executive pay make the job cuts harder to defend. He also pointed to rising Xbox hardware prices that Microsoft announced as part of the same period of changes. While it’s not fully clear whether Sanders is factoring in wider pressures hitting the gaming industry—like higher component costs and memory-related supply issues—the scale of Microsoft’s Xbox restructuring has clearly turned the story into something far bigger than a typical studio shake-up.
The layoffs have rapidly become one of the most talked-about and grim developments in games this year. Microsoft said it plans to cut about 3,200 roles connected to its gaming operation through the end of the current fiscal year. Of those, roughly half—around 1,600 positions—were set to be impacted on July 6, with an additional 1,600 job eliminations expected in the months that follow. Beyond the immediate staffing changes, the restructuring has also shifted Xbox’s first-party landscape. Double Fine, known for Brutal Legend and Kiln, and Compulsion Games, behind We Happy Few and South of Midnight, are set to leave Xbox and operate as independent studios. Ninja Theory, associated with Senua, and Undead Labs, responsible for State of Decay 3, are moving to another publisher. Meanwhile, Arkane is reportedly looking at strategic options with backing from the French government. Even major Bethesda, home to Fallout and Elder Scrolls, was impacted by layoffs, underlining how broad these cuts have been across Microsoft’s gaming footprint.
Microsoft is officially stepping away from Arkane, but the studio is working alongside the French government to maintain its operations.
Sanders’ Comments on Xbox Layoffs
Sanders took aim at the decision in a social media post, saying Microsoft’s profitability makes the reductions difficult to justify. He wrote: “Last year, Microsoft made $101 billion in profits, received a $12.5 billion tax break, and paid its CEO $96 million. This year, it’s raising the price of an Xbox by $150 and eliminating 3,200 jobs.”
His criticism also ties directly to Microsoft’s recently announced console price changes. Starting August 1, the company will increase the price of the 512 GB Xbox Series X/S lineup by $100, while 1 TB versions will rise by $150. On top of that, Microsoft will discontinue the 2 TB Xbox Series X/S model once existing stock is cleared. Sanders’ remarks land amid months of wider cost stress across the industry, as hardware makers continue to point to increased expenses for components and memory.
Sanders closed his post with: “Please don’t tell me corporate tax breaks create jobs. It never trickles down.” The message echoes his long-running opposition to trickle-down economic approaches, along with his view that cutting corporate taxes doesn’t automatically result in workforce growth. Regardless of where readers sit politically, the underlying point is hard to miss: Microsoft’s Xbox restructuring has become highly visible, and it’s drawing attention well beyond the usual circles around game development.
