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With 9,000 new layoffs at Microsoft, is AI set to change the gaming industry forever?

11 Jul 2025

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In recent years, like many other big technology firms, Microsoft has refocused its business towards developing AI, and this week the firm has announced it's slashing 9,000 jobs. A large chunk of these jobs are coming from its Xbox video gaming unit, with successful and longstanding titles like Elder Scrolls and Forza Motorport in the firing line. Why is Microsoft choosing AI over people? And what difference will this make for players of these games?Also, Nintendo has told shareholders that they're investing in virtual reality. Is Nintendo able to revive this less-than-popular tech? Or is this just another shiny promise for investors?Plus, two million people play eSports in Australia, which is more than five times the amount of Javelin throwers we have, so why is one an Olympic sport and not the other? Could the Brisbane Olympics be the chance for Australia to get in on the ground floor of elite competitive video gaming?GUESTS: Alice Clarke, award-winning tech journo and author of Press Any Button SubstackEdmond Tran, managing editor at This Week in VideogamesThis episode of Download This Show was made in Gadigal land and in Naarm. Technical production by Roi Huberman and Matthew Sigley.

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