As rumored earlier in June, Bloomberg reports that Microsoft is ready to cut a substantial number of gaming-related jobs. The reshuffling could happen as early as the end of the month. Unlike some previous cutbacks, the changes may have a long-lasting impact on the future of Xbox consoles. Central European gamers could be the first consumers affected. The Verge's Tom Warren expects Microsoft to shut down some Xbox operations in the region.
Warren doesn't provide many specifics, but distribution networks in parts of Europe may close. The targeted countries would include Germany, the Czech Republic, Poland, Switzerland, and Austria. Gamers are speculating that slow Xbox Series X and S shipments will stop entirely. European buyers previously reported that Xbox consoles have become increasingly scarce.
The restructuring in Europe would reflect the evolving strategy for Microsoft Gaming. While the company has partnered with Asus for the ROG Xbox Ally handhelds, the state of hardware development remains unclear. Microsoft recently announced that it would work with AMD for a potential Series X successor. Still, some analysts believe that the device will resemble a Windows PC more than a traditional console.
Central European residents may also struggle to find physical game releases at retailers. Microsoft has reduced the frequency of first-party Xbox games that ship on discs. Instead, buyers are encouraged to purchase digital downloads from the Xbox Store. The company prioritizes services such as Game Pass and cloud streaming, which are accessible on PCs and mobile devices. As a result, Microsoft is less reliant on distributing gaming hardware across the globe.
Although Xbox console sales have already declined in Europe, some supporters are still disappointed. Microsoft hopes that these buyers will adapt to the new digital age. Until PlayStation follows suit, PS5 consoles exist as alternatives.