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Xbox to Cut 3,200 Jobs, Four Studios Leave Microsoft

The layoffs and studio separations represent the largest restructuring in Xbox history, with major first-party developers becoming independent while Microsoft retains no announced game cancellations.

Reporting from 1 source: Denfaminicogamer.

Xbox to Cut 3,200 Jobs, Four Studios Leave Microsoft

Microsoft's Xbox division will cut approximately 3,200 jobs through fiscal year 2027, including 1,600 on July 6. Four studios-Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs-will leave Xbox and transition to independent or new ownership structures, retaining their IP and funding for current projects.

On July 6, Microsoft announced the largest restructuring in Xbox history, cutting approximately 3,200 jobs through fiscal year 2027. About 1,600 of those cuts took place on the same day. Four studios will leave Xbox: Compulsion Games and Double Fine Productions return to their original management as independent studios, retaining their IP, catalogs, and funding for next titles. Ninja Theory and Undead Labs have reached agreements with new owners, receiving funding to complete and grow 'Senua' and 'State of Decay 3' respectively. In France, Arkane management has begun consultations with the works council. Xbox CEO Asha Sharma said the change is 'not to make Xbox's future smaller, but to move toward a bigger future.' No announced games or projects will be canceled as part of these changes.

Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.

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