Xbox reveals July Game Pass lineup after 3,200 layoffs and CEO admits strategy failed

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Microsoft has announced the July lineup of games for Game Pass in its first announcement following the layoffs that ripped through the Xbox business yesterday.

CEO Asha Sharma cut 1,600 staff from Xbox yesterday, with another 1,600 staff to go over the course of the next 12 months. Four studios have left Microsoft as part of the restructure, which Sharma called the “most significant in Xbox history.”

Explaining the cuts, Sharma admitted that Microsoft’s gaming strategy had failed , and a key part of that failure had to do with Game Pass. The Wall Street Journal said that Microsoft had expected Game Pass subscriptions to hit around 77 million this year, but it currently has only about 30 million. As revealed during the FTC vs Microsoft trial of 2023, Microsoft had hoped for 100 million subscribers by 2030, which seems very unlikely at this stage.

“Our business today is not healthy,” Sharma said. “We are operating at margins that are 3-10x lower than comparable platform and publishing businesses. We entered Gen 9 with a smaller install base and a higher cost structure. To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. While those businesses have created meaningful value, they did not grow at the pace we expected. As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history. We must reset Xbox.”

Amid questions about the future of Game Pass and its importance to Xbox, Microsoft has announced what subscribers can expect during the first half of this month. There are some big names in here, from Tony Hawk’s Pro Skater 1+ 2 to Palworld 1.0. Available today, July 6, is 2.5D action Metroidvania Winds of Arcana: Ruination (Cloud, Console, Handheld, and PC) across Game Pass Ultimate, Game Pass Premium, and PC Game Pass. The sole day one title is Ascend to Zero (Cloud, XBOX Series X|S, Handheld, and PC), which hits Game Pass Ultimate and PC Game Pass on July 13.

There is no mention of any of the cuts or studio exists in Microsoft's Xbox Wire post announcing the Game Pass lineup.

Xbox Game Pass July 2026 Wave 1 lineup:

Gears of War: Reloaded (Cloud, XBOX Series X|S, Handheld, and PC) – July 9 Now with Game Pass Premium; joining Game Pass Ultimate and PC Game Pass

Tamashika (Cloud, XBOX Series X|S, Handheld, and PC) – July 9 Game Pass Ultimate, Game Pass Premium, PC Game Pass

Ascend to Zero (Cloud, XBOX Series X|S, Handheld, and PC) – July 13 Game Pass Ultimate, PC Game Pass

PBA Pro Bowling 2026 (Cloud, XBOX Series X|S, and PC) – July 14 Game Pass Ultimate, Game Pass Premium, and PC Game Pass

Quarantine Zone: The Last Check (Cloud, XBOX Series X|S, and PC) – July 15 Now with Game Pass Premium; joining Game Pass Ultimate and PC Game Pass

Mavrix by Matt Jones (Cloud, XBOX Series X|S, Handheld, and PC) – July 16 Game Pass Ultimate, Game Pass Premium, PC Game Pass

FixForce (Cloud, XBOX Series X|S, and PC) – July 17 Game Pass Ultimate, Game Pass Premium, PC Game Pass

Fogpiercer (PC) – July 17 Game Pass Ultimate, PC Game Pass

The Planet Crafter (Cloud, XBOX Series X|S, and PC) – July 21 Game Pass Ultimate, Game Pass Premium, PC Game Pass

Tony Hawk’s Pro Skater 1 + 2 (Cloud, Console, and PC) – July 21 Game Pass Ultimate, Game Pass Premium, PC Game Pass

Xbox Game Pass titles leaving July 15

Dungeons of Hinterberg (Cloud, Console, and PC)

EA Sports Football Club 24 (Cloud, Console, and PC)

Stellaris (Cloud, Console, and PC)

Golf With Your Friends (Cloud, Console, and PC)

Minami Lane (Cloud, Console, and PC)

Powerwash Simulator (Cloud, Console, and PC)

Shadow of the Tomb Raider Definitive Edition (Cloud, Console, and PC)

Splitgate: Arena Reloaded (Cloud, Console, and PC)

Super Fantasy Kingdom (Game Preview) (PC)

Techtonica (Game Preview) (Cloud, Console, and PC)

Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.