Second wave of Xbox cuts reported to be happening this week, with "several" studios apparently facing consolidation
- Xbox is reportedly preparing to cut hundreds of jobs this week as the company plans studio consolidation, according to The Information, which cited an unnamed source briefed on Microsoft's plans.
- This potential reduction follows a major restructuring in July that resulted in 1,600 job cuts, part of CEO Asha Sharma's plan for approximately 3,200 total reductions throughout FY27.
- Sharma noted the business was "not healthy," citing margins significantly lower than rival publishing businesses, and emphasized the need for a "reset" targeting content portfolio, platform, and team operations.
- Xbox plans to focus on major franchises like Fallout and Elder Scrolls; previous cuts impacted Bethesda, Zenimax Online, and Doom and Quake developers, while Ninja Theory and Undead Labs were sold to unnamed buyers.
- While over 200 million new players joined Xbox in FY26, the company's business failed to grow alongside its audience, and Sharma expects the gaming division to return to growth by the end of FY27.
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Microsoft is laying off 268 Xbox staffers and Ninja Theory may close
Microsoft is laying off around 260 Xbox employees today, as part of an ongoing "reset" of its gaming business. 1,600 Xbox employees were impacted by layoffs in July, with Xbox CEO Asha Sharma describing the cuts as "the most significant restructure in Xbox history." Today's layoffs are part of the 3,200 roles that were previously […]
The video game industry could go on with its countless layoffs.
Halo Franchise Reportedly Moving Under Activision Blizzard in Xbox Reorganization
Microsoft could be making a major change to how it manages future Halo games. According to gaming insider NateTheHate, the iconic first-person-shooter franchise is reportedly being moved under Activision Blizzard as part of a wider Xbox reorganization. Halo Could Move Under Activision Blizzard, Insider Claims In a series of posts on ResetEra, popular insider NateTheHate […]
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