Vermont Senator and self-described democratic socialist Bernie Sanders has weighed in on Microsoft’s recent Xbox layoffs, pointing to the company’s profits, executive compensation, and Xbox hardware price increases in response to the cuts. Whether Sanders is fully accounting for broader factors affecting the gaming industry like rising hardware costs due to the RAM crisis, is unclear, but the scale of Xbox’s restructuring has now drawn attention well beyond the gaming community.
The Xbox layoffs have quickly become one of the biggest and saddest gaming stories of the year. Microsoft confirmed plans to eliminate roughly 3,200 jobs tied to its gaming business through the current fiscal year, with around 1,600 employees affected on July 6 and another 1,600 positions expected to be eliminated over the coming months. The restructuring has also reshaped Xbox’s first-party portfolio, with Double Fine (Brutal Legend, Kiln) and Compulsion Games (We Happy Few, South of Midnight) leaving Xbox to become independent studios, Ninja Theory (Senua) and Undead Labs (State of Decay 3) moving to another publisher, and Arkane reportedly exploring strategic options with support from the French government. Even gaming giants like Bethesda (Fallout, Elder Scrolls) were hit with layoffs, showing just how widespread these layoffs are.
Microsoft Working With French Government Over Arkane’s Future
Microsoft is officially parting ways with Arkane, but the studio is working with the French government to keep its doors open.
Sanders addressed the layoffs in a post on social media, arguing that Microsoft’s financial performance makes the workforce reductions difficult to justify. He wrote, “Last year, Microsoft made $101 billion in profits, got 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.”
GameRant Quiz
Part of Sanders’ criticism referenced Microsoft’s recently announced Xbox hardware price increases. Beginning August 1, the company is increasing the price of the 512 GB Xbox Series X/S models by $100, while 1 TB models will increase by $150. Microsoft is also discontinuing the 2 TB Xbox Series X/S configuration after current inventory is sold. Those price increases follow months of broader cost pressures affecting the gaming industry, with companies across hardware manufacturing continuing to cite higher component and memory costs.
Sanders concluded his post by writing, “Please don’t tell me corporate tax breaks create jobs. It never trickles down.” The statement reflects his longstanding criticism of trickle-down economic policy and his belief that corporate tax reductions do not necessarily translate into workforce growth. Regardless of where people fall politically, Sanders’ comments underscore just how visible Microsoft’s Xbox restructuring has become.
