The Shocking Reality Behind Xbox's Massive Job Cuts and Studio Closures

The Shocking Reality Behind Xbox's Massive Job Cuts and Studio Closures

July 15, 2026 · 1h 53m · Episode 340

About this episode

The episode discusses the impact of AI on gaming, recent layoffs at Microsoft, and the future of major game studios.

Most gamers don't realize how rapidly AI is transforming the way we play—and the massive shifts happening behind the scenes. In this episode of the Extreme Gaming Podcast, Trev and Gray dive into the shocking layoffs at Microsoft, the questionable future of beloved studios like id Software, and how AI-powered upscaling like DLSS and FSR are revolutionizing graphics—with AMD now challenging NVIDIA's dominance by pushing 8X frame generation. Gray reveals how industry giants are trimming staff and cutting costs while strategically moving towards Unreal Engine or licensing IP instead of developing new titles. You’ll discover why studios like Bethesda, Ed Software, and even Rockstar are making controversial decisions that could shape gaming's future for years. Plus, we unpack the latest in hardware— from the insane price of new RTX 5090 graphics cards to the rise of SteamOS and dual-booting gaming on the PC.

People in this episode

Hosts: Trev, Gray

Topics covered

Keywords

Mentioned in this episode

Organizations: Microsoft, id Software, AMD, NVIDIA, Bethesda, Ed Software, Rockstar

Products: RTX 5090, SteamOS, Unreal Engine, DLSS, FSR

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