Microsoft’s Xbox division begins a major “reset” that includes layoffs of about 3,200 employees and changes to several studios within Xbox Game Studios. Multiple outlets report that Xbox CEO Asha Sharma confirms the job cuts, which are expected to occur over the next financial year, with an initial portion starting immediately. At the same time, four studios are leaving Microsoft’s direct ownership or branding as part of the restructuring. Compulsion Games and Double Fine are set to become independent, according to several reports, shifting away from the Xbox Games Studio banner. Ninja Theory and Undead Labs are also leaving, with reporting indicating they move to new ownership under arrangements not fully detailed publicly.
In addition, Arkane Lyon’s future is described as uncertain across sources. Several outlets say Arkane is in consultation or talks regarding “strategic options,” with the possibility that it may be sold or spun out, but no final decision is reported. Overall, the changes affect multiple first- and second-party studios, alongside a significant reduction in Xbox staff.
