Katarzyna Petru
In the world of gaming, things are heating up again. Microsoft is planning another round of mass layoffs in the Xbox division, Netflix is removing over 20 games from its catalogue, while Sony and Nintendo are quietly reaping the benefits of their strategy. Two different trajectories — one shows growth through predictability, the other seeks a new identity in chaos.
Xbox and the "end of the console era"?
According to Bloomberg reports, Microsoft is preparing a "large round of layoffs" at Xbox — likely as soon as next week, coinciding with the end of the fiscal year. Thousands of employees are said to be affected. This will be the fourth wave of job cuts in the last 18 months.
In the background is a record acquisition of Activision Blizzard for $69 billion and an increasingly apparent shift towards streaming. Microsoft is talking less about consoles and more about how "every device is an Xbox". Theoretically, this sounds fresh, but the technical reality is still lagging — the Xbox app is still not available on Apple TV or Google TV.
There is also a lack of a convincing ecosystem that could withstand competition from the PS5 and Switch 2. The availability of Xbox consoles in the global market is deteriorating. If the “no-console” strategy is to succeed, so far the results are... difficult to assess.
Netflix is pulling back. 22 games are disappearing from the catalogue
It’s not just Microsoft that’s changing direction. Netflix, which since 2021 has been increasingly bold in experimenting with games, is removing as many as 22 titles from its library in July. Among those disappearing are Hades, Katana Zero, Monument Valley (all parts) as well as games from the Golden Idol series. These are games praised by critics, raising questions about the future viability of this model.
The new head of Netflix Games, Alain Tascan, is announcing changes and a shift towards native games for televisions, which are expected to emerge by the end of 2025. For now, however, Netflix is sticking with mobile games on Android and iOS, while experiments with streaming have yet to move beyond the testing phase.
Meanwhile, Sony and Nintendo...
While the competition cuts costs, reorganises and searches for a new identity, Sony and Nintendo are simply doing their thing — and with good results. The PS5 dominates in Europe, North America and Asia, and Microsoft's release of their exclusives has only given the console a boost.
On the other hand, Nintendo has set another record. The Switch 2 has become the fastest-selling console in history, even dethroning its predecessor. No revolution in communication, but a continuous evolution — and it's working.
What’s next?
The gaming industry is clearly splitting into those who know what they want to achieve — and those still searching for a new path. Xbox and Netflix are trying to move beyond classic models, but so far the results are more costly than groundbreaking.
Is this a temporary crisis? Or perhaps a sign that the future of gaming won’t necessarily look like we imagined it would 3–4 years ago?
