Microsoft's Gaming Overhaul and Visa Setback Collide as Regulators Close In
Published on 10/09/2026 at 13:10 | Editorial boerse-global.de
Italian antitrust officials opened a probe into Microsoft's gaming division on Thursday, teaming up with counterparts in Norway and Denmark to examine how the company handles virtual currencies inside titles such as Diablo Immortal and Call of Duty Mobile. At issue is whether swapping euros for in-game tokens obscures what players — minors in particular — actually spend, a practice the AGCM believes may run afoul of European consumer protection rules. Companies found in breach can be fined as much as 4% of annual revenue in each affected country.
The same day brought a second headache from Washington, where the US Department of Labor suspended Microsoft from the PERM program, the pipeline employers use to secure permanent residency for foreign specialists. Vice President JD Vance accused the company of gaming the visa system and of offsetting last year's layoffs with overseas talent.
Market Shrugs Off the Noise
Investors hardly flinched. Microsoft shares added 1.0% to trade at €470.80, leaving the stock 1.5% shy of its 52-week high. The muted reaction stands in contrast to the prior session, when the equity slipped 1.5% to €466.15 as the twin regulatory headlines first landed — a dip that still kept the price within roughly 2.5% of its €478.10 peak.
Microsoft pushed back hard on the Labor Department's claims, noting that about 80% of the roughly 6,000 H-1B petitions it filed over the past fiscal year were simply extensions or status changes for existing staff. Fresh hires, the company said, accounted for only around 1% of its US workforce and involved people already legally present in the country.
Should investors sell immediately? Or is it worth buying Microsoft?
What the PERM Freeze Does — and Doesn't — Touch
The H-1B program itself remains untouched by the suspension, meaning Microsoft can keep its current international employees on board and renew their existing work authorizations. What's frozen is the bridge to a green card. If that path stays blocked for months, the concern is a slow drain of specialists whose residency applications are stuck in limbo, alongside proposed surcharges on guest-worker visas that could make future recruiting more expensive. Shifting research and development abroad would bring its own friction and added cost.
The company does have fallbacks. Its engineering hubs in Vancouver and Toronto can absorb international talent, and if Microsoft can show the department's allegations don't hold up, reviews could resume before long. That scenario would leave its cloud and AI momentum intact, framing the recent pullback as a pause just below record territory rather than a turning point.
Xbox Gets a New Playbook
While regulators circle, Microsoft is redrawing its gaming map. The company unveiled a new division called "XP" that will house media projects, merchandising and theme-park ventures built around its best-known franchises. Kayleen Walters takes the helm, with Maria Angelidou-Smith set to step into her former role leading Mojang on October 19, 2026.
The reshuffle answers real pressure on the console side. US Xbox hardware sales fell 31% year over year in August, according to Circana, and the company has already cut about 3,200 gaming jobs this year. Film has been a brighter spot: "A Minecraft Movie" pulled in $550 million within ten days last year, and a sequel is slated for July 23, 2027.
Where the Story Goes Next
For holders, the line in the sand sits near €460. Staying above it keeps the broader uptrend alive; a sustained break below would suggest the market is pricing in a longer stretch of regulatory uncertainty. The next real catalyst is how the Labor Department responds to Microsoft's rebuttals — whether it escalates formally or settles on disclosure terms. Just as telling will be whether the company takes the suspension to court, or whether the restrictions spread to other tech giants.
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