Xbox, layoff and Studio
Digest more
Xbox owns a lot of studios across the globe; here's which ones are still active and which are not as of July 2026
1don MSN
A ‘painful’ reset for Xbox: 3,200 job cuts, studio spinoffs, and a vow to return to growth in 2027
Xbox CEO Asha Sharma calls it the most significant restructuring in Xbox history: 3,200 job cuts, four studio spinoffs, a new COO, and a flattened management structure — all aimed at turning around a division she says has been losing 64 cents on every dollar invested in its studios.
The layoffs were part of wider cuts at Microsoft, as the company prioritizes spending on artificial intelligence.
Xbox CEO Asha Sharma said Microsoft’s video game business is in desperate need of a “reset,” which apparently means job cuts and the shedding of several game studios. Sharma announced in a memo to staff,
The Xbox restructuring will involve divestment of four studios, Xbox's new head, Asha Sharma, said in a note to employees.
Compulsion Games and Double Fine will become independent studios, Ninja Theory and Undead Labs to join new ownership, Arkane begins consultation
Obsidian Entertainment was said to be on the potential chopping block in Xbox's incoming layoffs, but those rumors may be wrong and Xbox may keep Obsidian.
