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Microsoft's ongoing wave of Xbox layoffs continued this week, with reports that Gears of War's story director was laid off just days after Gears of War: E-Day went gold, and that the Age of Empires development team was 'devastated' by cuts that also reportedly canceled its next game. The cuts follow earlier layoffs that affected roughly 1,600 Xbox employees over the summer, part of a broader pattern of studio downsizing and cancellations across Microsoft's gaming division. Microsoft CEO Satya Nadella addressed the situation on the Sources Podcast, calling the 'streamlining' under Xbox CEO Asha Sharma 'great to see' and saying he feels good about where the division is headed. His comments drew criticism from fans and industry observers who argue they downplay the human cost of repeated layoffs and canceled projects at storied studios.