

Microsoft is Gutting the Video Game Industry w/ Nathan Grayson
42 snips Jul 17, 2025
Nathan Grayson, co-founder of the worker-owned gaming news site Aftermath and author of 'Stream Big,' dives into the tumultuous state of the video game industry. He discusses Microsoft's recent layoffs and shifting focus from game ownership to subscription models, raising concerns about long-term impacts on studios. The ethical implications of AI integration in the workplace are explored, along with the potential profitability of Microsoft's Game Pass. Grayson highlights the struggles faced by employees and the challenges within the gaming landscape.
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Activision Purchase Followed by Layoffs
- Microsoft's $68.7 billion Activision Blizzard purchase was followed immediately by layoffs, showing a lack of long-term vision.
- Their gaming strategy prioritizes profit margins over industry health or worker stability.
Union Promises Meet Layoff Reality
- Microsoft initially promised to respect union efforts but quickly resumed layoffs post-Activision deal closure.
- Unions remain in limbo during layoffs, with ongoing contract negotiations complicated by job cuts.
AI Replacement Embedded in Layoffs
- Xbox producer recommended AI to laid-off workers as a coping mechanism, highlighting tone-deaf corporate culture.
- Microsoft's heavy AI push aims to replace human roles amid frequent workforce reductions.