As Xbox CEO Asha Sharma paid a visit to Bethesda’s office in Rockville, Maryland, to catch a glimpse of The Elder Scrolls VI, union workers staged an unmissable protest outside. A giant inflatable rat, affectionately known as ‘Scabby’, towered over the lawn, accompanied by a sea of red flags representing each person laid off by Xbox under Sharma’s leadership. This visual spectacle was more than just a statement – it was a poignant reminder of the human cost of the mass layoffs that have become an unfortunate norm within Microsoft and other studios across the video game industry.
The Communications Workers of America (CWA) union, which represents thousands of Xbox employees from developers to customer support staff behind major franchises like Call of Duty and World of Warcraft, organized this protest. According to Nathan Hahn, a OneBGS-CWA union member, the goal was to force Sharma to confront the devastating impact of these layoffs on the people who work tirelessly to bring us our favorite games. “We heard that Microsoft leadership was coming to our office this week,” Hahn explained, “and we decided to make our presence visible at the office to show how our developers have been impacted by these devastating layoffs.”
The protest came just weeks after CWA members in the United States and Canada staged ‘Save Our Devs’ rallies outside Xbox offices. These rallies will continue on August 18, with events planned for several locations across North America. But this isn’t just a localized issue – it’s a global concern that affects the very fabric of our industry. As Hahn emphasized, “If Microsoft leadership does not have the courage to do what’s right for our studios to make the best possible games, it’s up to us to stand up for each other and protect the future of our careers and the game industry.”
The numbers are staggering: 3,200 jobs eliminated across Microsoft’s video game division by the end of the current fiscal year – starting with immediate cuts at major studios like Obsidian, id Software, and ZeniMax Online Studios. It marked the fifth round of mass layoffs at Xbox in three years. The CWA has taken legal action against Microsoft for allegedly mishandling these job cuts, claiming that the company “unlawfully fired people without giving notice to or discussing it with the union.”
As the VR and gaming communities continue to push boundaries and innovate, we must not forget the human side of this industry. The faces behind the games – the developers, artists, engineers, and producers who pour their hearts and souls into every project – deserve our attention and compassion. This protest was a powerful reminder that our passion for gaming should be matched by our commitment to the people who make it possible.
As we look towards the future of VR and XR, one thing is clear: the industry’s reliance on mass layoffs must come to an end. We need talented developers, artists, and engineers to create immersive experiences that transport us to new worlds. By standing together with union workers like those from the CWA, we can ensure that our love for gaming translates into a better future for everyone involved in its creation – not just the bottom line.
Source: Game Developer XR — 2026-08-12