Xbox Announces 3,200 Layoffs, Four Studios Leaving Umbrella
The layoffs and studio divestitures signal a major restructuring of Xbox's first-party development as Microsoft shifts toward higher-priority projects and next-generation hardware.
Reporting from 1 source: Anime News Network.
Microsoft Gaming CEO Asha Sharma announced a "reset" of the business, with 3,200 layoffs planned through the 2027 fiscal year, starting with 1,600 immediate cuts. Four studios-Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs-will leave the Xbox umbrella. Compulsion and Double Fine will become independent with their IPs; Ninja Theory and Undead Labs will go to new owners. Arkane France is in consultation. The company aims to reduce management layers and appoint a COO.
Microsoft Gaming CEO Asha Sharma told employees on Monday that the company is "resetting" its business. The plan includes 3,200 layoffs through the 2027 fiscal year, starting with 1,600 immediate cuts. Four studios will leave the Xbox umbrella in a move that transforms the first-party lineup. The restructuring also includes streamlining management layers and creating a Chief Operating Officer role.
- Compulsion Games: will return to current management and become independent with its IP
- Double Fine Productions: will return to current management and become independent with its IP
- Ninja Theory: will come under unnamed new ownership
- Undead Labs: will come under unnamed new ownership
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.
Sources
- Anime News Network News Xbox Announces Layoffs Amid 'Reset' of Video Game Division