Yesterday marked a tough day for Microsoft and the gaming industry, as mass layoffs affected thousands within the company, coinciding with cuts to game development teams and projects. This unsettling backdrop clashed with an email from ID@Xbox inviting studios to an upcoming AI roundtable at Gamescom 2025, asking for feedback on using AI to enhance game development efficiency. The reach-out felt tone-deaf against the backdrop of layoffs affecting prominent studios like King and Bethesda, where former employees may have much more pressing concerns than AI discussions. Microsoft’s significant investment in AI has raised fears that it might replace human workers, with studios already experimenting with AI-generated content. The message highlights the precarious balance Microsoft must maintain between investor expectations and the cultural backlash against AI in gaming, prompting questions about whether the company will prioritize human talent over technology-driven cost-cutting.
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