Xbox Cuts 4 Game Studios and Over 1,600 Jobs – DTH

DTH-6-150x150Xbox announced four game studios are no longer part of the company and will cut approximately 20% of the company in fiscal 2027, the UK’s National Crime Agency and Internet Watch Foundation warns parents not to post pictures of children due to AI abuse, and Amazon announces the end of new customers for Mechanical Turk.

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Show Notes

Xbox boss Asha Sharma announced Microsoft is cutting approximately 3,200 jobs — around 20% of the company — across the Xbox division through fiscal year 2027. 1,600 roles will be eliminated immediately with another 1,600 to come. Game studios Compulsion Games, Double Fine, Ninja Theory, and Undead Labs are no longer part of Xbox. In the memo shared by Sharma, a streamlining of decision making management structure will reduce management layers from a current max of 14 to 3-5. A newly created Xbox Chief Operating Officer role will be helmed by Helen Chiang, who formerly led Mojang and the Minecraft franchise.

Source: IGN

Nintendo updated a European FAQ page to announce all versions of the original Switch will no longer be sold in the EU beginning in 2027. This update follows an earlier announcement of updated Joy-Con controllers, Joy-Con 2, Switch 2 Pro Controller, N64 + GameCube Switch controllers rolling out ahead of EU regulations mandating user-replaceable batteries, which comes into effect February 2027.

Source: The Verge

Analyst Ming-Chi Quo reports the rumored upcoming iPhone foldable may be announced alongside the iPhone 18 Pro and Pro Max, but preorders could open later on due to producing a very limited number of units. Kuo expects up to 8 million of the foldable phones to be ready to go compared to the expected 20-22 million units for the 18 Pro and Pro Max. Kuo also expects the foldable to be priced between $2,300-$2,500.

Source: Ming-Chi Quo and Digital Trends

The UK’s National Crime Agency and Internet Watch Foundation is warning parents not to publicly post images of children due to AI-generated abuse imagery. The IWF notes AI abuse images and videos jumped 14% in 2025 with abuse videos alone rising to 3,440 from a previously reported 13. The newly issued guidelines also recommend parents tighten privacy settings and lock down old posts.

Source: The Next Web

China’s new interim regulations regarding anthropomorphic AI interaction services are set to begin July 15th, prompting ByteDance’s Doubao and Alibaba’s Qwen to announce the disabling of custom AI agent features on July 15th. Under the new regulations customer service bots, workplace assistants, and research tools are exempt, as long as the tools do not offer sustained emotional interaction. Tencent pulled similar Yuanbao AI features back in June.

Source: South China Morning Post

Amazon announced the Mechanical Turk marketplace will cease signups for new customers on July 30th. The statement notes “Existing customers can continue to use the service as normal. AWS continues to invest in security and availability improvements for Mechanical Turk, but we do not plan to introduce new features.” Mechanical Turk launched in 2005 to enable companies and researchers to offer money to people to complete various tasks.

Source: TechCrunch

On Monday Broadcom and Apple reached an agreement to extend their chip development and supply partnership through 2031. Broadcom supplied products include cellular network, wifi, and Bluetooth connectivity chips, along with various other networking ​semiconductors. Reuters reports analysts say Apple is responsible for approximately 20% of Broadcom’s annual revenue.

Source: Reuters

GameFile has an update on Sony’s decision to end production of discs for games beginning in 2028, noting publishers will still be able to re-order production of physical discs for games released prior to January 2028, though the ordering process will change in a currently undisclosed manner. GameFile also reported publishers will be provided “the opportunity to release new games at retail using digital codes” in an also currently-undisclosed-at-this-time process.

Source: GameFile