Next-Gen Console Watch Game Pass Isn't Hurting Xbox Sales, So Is AI To Blame For Layoffs? - Next-Gen Console Watch
Jul 11, 2025
This week, guest Max Scoville, co-host of IGN's PlayStation podcast, dives into the contentious topic of Xbox layoffs and their implications for the gaming industry. They tackle whether Game Pass impacts sales, revealing that many Xbox titles are actually thriving on multiple platforms. The discussion also explores the broader influence of AI investments in gaming, questioning if current industry pressures stem from competition rather than specific corporate missteps. Scoville’s insights shed light on the future of gaming amidst these rapid changes.
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Episode notes
Game Pass Drives Strong Sales
- Game Pass is not hurting Microsoft's game sales as five of the top seven best-selling games of May 2025 were Microsoft-published.
- These games sell well across platforms like PlayStation, disproving the notion that Game Pass devalues sales.
PlayStation Gamers Boost Xbox Sales
- Microsoft benefits from PlayStation gamers buying Microsoft games on PS5, boosting developer support.
- This cross-platform sales dynamic challenges traditional models and supports the success of Game Pass.
AI's Role in Xbox Layoffs
- Microsoft's massive $80 billion investment in AI suggests a strategic pivot affecting gaming divisions.
- AI investment may play a bigger role than Game Pass in recent Xbox layoffs and project cancellations.