The recent layoffs at Microsoft, including deep cuts at Xbox, impacted 4,800 people across the business. One of the staffers let go was Kevin LaChapelle, a 37-year Microsoft veteran who helped bring to market one of the best, most-beloved features in Xbox console history: backwards compatibility.
LaChapelle, who was the vice president of the Xbox platform, confirmed on LinkedIn that he was part of the cuts. He started at Microsoft in 1989 as a software designer engineer, and moved to different parts of the business over the decades.
He started working on Xbox during the Xbox 360 days and later became a software engineering manager where he led the team responsible for delivering the popular backward compatibility program on Xbox One. This was the popular feature, announced at E3 2015, that allowed Xbox One owners to play Xbox 360 titles on the newer platform and later Xbox Series X|S as well.
“Sitting in the auditorium when Phil announced the program at E3 2015 was incredible. The audience’s reaction was unbelievable,” he said.
An update in November 2021 that added 70+ games, including original Xbox and Xbox 360 games, was the final update to the backwards compatiblity catalog.
After that, LaChapelle became the vice president and general manager for xCloud, which would become Xbox Cloud Gaming. In that role, he led the team from conception to launch, and LaChapelle is still a big believer in streaming for games.
“I am a firm believer that all entertainment will eventually become streamed to you wherever you are. I look forward to watching how Xbox evolves going forward and I wish the team nothing but success,” he said.
One of the reasons Microsoft is making these cuts is because some of its strategic bets, including Xbox Game Pass, did not work out. Part of the reason why, experts said, was because Microsoft failed to convince PC and cloud users to sign up for Game Pass.
The 4,800 layoffs at Microsoft amounted to about 2.1% of the company’s global headcount. At Xbox specifically, 1,600 people lost their job this week, with another 1,600 set to be laid off in the next year, Microsoft said.
In addition to layoffs, Microsoft is divesting of at least five studios. Ninja Theory and Undead Labs have been sold to unnamed buyers, while Compulsion Games and Double Fine are going independent again. Arkane Lyon has entered “consultation” under French labor rules, and that process will decide the fate of the developer and its in-development game, Marvel’s Blade.





