Xbox memo: Game Pass strategy, 2,000 layoffs and 30 million subscribers
IGN says an internal Xbox memo blames the old Game Pass strategy for financial trouble after nearly 2,000 layoffs and studio closures in 2026.
- The same report says Xbox faced nearly 2,000 layoffs and multiple studio closures in 2026.
- The coverage also links the issues to Microsoft’s $69 billion Activision Blizzard acquisition and the addition of Call of Duty to Game Pass.
What happened
IGN says an internal Xbox memo, reportedly viewed by Windows Central, points to the earlier Game Pass approach as the cause of severe financial pressure. In the report, the document is attributed to Xbox CEO Asha Sharma, who is said to have claimed Xbox is now seeing growth again after hitting a low point.
The same report places the memo in the context of a major 2026 restructuring, with nearly 2,000 layoffs and studio closures. IGN also says the $69 billion Activision Blizzard acquisition and the addition of Call of Duty to Game Pass affected the cost structure and Call of Duty sales.
A separate Bloomberg Live video description refers to earlier Wall Street Journal reporting that Microsoft had expected around 77 million Game Pass subscribers this year, while the current total is said to be around 30 million. The same description also references FTC case material from 2023, in which Microsoft was reportedly aiming for 100 million subscribers by 2030.
Timeline
2023: FTC v. Microsoft case material reportedly mentions a target of 100 million Game Pass subscribers by 2030.
2026: Xbox reportedly faces nearly 2,000 layoffs and studio closures.
2026-10-06: IGN publishes reporting on an internal Xbox memo blaming the earlier Game Pass strategy for financial problems, while also saying Xbox is seeing growth again.
2026-10-06: Bloomberg Live posts a video description referring to an expected total of about 77 million Game Pass subscribers this year and a current figure of around 30 million.
Background
Game Pass has long been a core part of Microsoft’s Xbox strategy, but the sources in this cluster show that expectations around growth and subscriptions vary widely. The cited figures of 77 million, 30 million, and 100 million come from secondary reporting and a video description, not from a directly public Microsoft document in the material provided.
The memo claims therefore remain partly unconfirmed. Based on the available sources, it is not possible to determine how much of the financial pressure is directly attributable to Game Pass, or whether Microsoft has publicly confirmed the memo’s contents.