Microsoft has unveiled the first wave of titles coming to Xbox Game Pass this July, a routine update that arrives under the shadow of the most significant restructuring in the company's gaming history. Yesterday, CEO Asha Sharma announced that 1,600 staff members were being cut from the Xbox division, with another 1,600 layoffs expected over the next year as four studios depart the company.

Addressing the move, Sharma was blunt about the state of the business. “Our business today is not healthy,” she said, noting that Microsoft is operating at margins significantly lower than comparable platform and publishing businesses. According to Sharma, the core strategy of relying on Game Pass to drive growth has faltered. While the company projected 77 million subscribers by this point, it currently holds roughly 30 million, making earlier goals of 100 million subscribers by 2030 appear unlikely.

“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,” Sharma explained. “While those businesses have created meaningful value, they did not grow at the pace we expected.” Microsoft is now looking to “reset” the division to combat what Sharma described as the most severe hardware crisis in the industry's history.

July 2026 Game Pass Wave 1 Lineup

Despite the internal turmoil, the service continues its release cadence for the first half of the month. The following titles are joining the library:

  • Winds of Arcana: Ruination (Cloud, Console, Handheld, PC) – Available Now
  • Gears of War: Reloaded (Cloud, XBOX Series X|S, Handheld, PC) – July 9
  • Tamashika (Cloud, XBOX Series X|S, Handheld, PC) – July 9
  • Ascend to Zero (Cloud, XBOX Series X|S, Handheld, PC) – July 13
  • PBA Pro Bowling 2026 (Cloud, XBOX Series X|S, PC) – July 14
  • Quarantine Zone: The Last Check (Cloud, XBOX Series X|S, PC) – July 15
  • Mavrix (Cloud, XBOX Series X|S, Handheld, PC) – July 16
  • FixForce (Cloud, XBOX Series X|S, PC) – July 17
  • Fogpiercer (PC) – July 17
  • The Planet Crafter (Cloud, XBOX Series X|S, PC) – July 21
  • Tony Hawk’s Pro Skater 1 + 2 (Cloud, Console, PC) – July 21

Titles Departing the Service

As is standard with the subscription service, several games will rotate out of the catalog on July 15. If you are currently playing these, you will need to purchase them or finish them before they depart:

  • Dungeons of Hinterberg
  • EA Sports Football Club 24
  • Stellaris
  • Golf With Your Friends
  • Minami Lane
  • Powerwash Simulator
  • Shadow of the Tomb Raider Definitive Edition
  • Splitgate: Arena Reloaded
  • Super Fantasy Kingdom (Game Preview)
  • Techtonica (Game Preview)

Microsoft's official announcement made no mention of the layoffs or the closure of the four studios, focusing instead on the upcoming content additions for Ultimate, Premium, and PC Game Pass subscribers.