Overview
- Kevin LaChapelle, a 37-year Microsoft veteran who led the Xbox Backward Compatibility program and later ran Xbox Cloud Gaming, confirmed on LinkedIn Wednesday that he was among roughly 1,600 roles cut in the first wave of layoffs.
- Microsoft plans about 3,200 job reductions in Xbox during fiscal 2027, with the initial wave eliminating roughly half those roles and further rounds expected to follow.
- Backward Compatibility is widely praised by players for letting older Xbox discs run on modern hardware, while Xbox’s Cloud Gaming effort has received heavy investment but has not clearly attracted a steady core audience.
- Reports say the cuts have reached Xbox-owned studios as well, with roughly 60–70 developers reported let go at Obsidian and significant coder layoffs at id Software, raising questions about studio roadmaps and ongoing projects.
- LaChapelle framed his exit with optimism for Xbox’s future, and Xbox leaders say the reductions are intended to 'healthen' the business, so observers should watch upcoming product plans and staffing moves for signs of shifting platform priorities.