Microsoft just announced the most significant restructuring in XBOX history, with over 3,200 employees set to be laid off throughout 2027, and four of the company's gaming studios being handed over to new management.
XBOX CEO Asha Sharma announced the layoffs earlier today, revealing that XBOX is currently operating at margins that are 3-10x lower than its competitors', as the company's all-in bet on Game Pass didn't pay out quite how they expected. 1600 employees were laid off today, with the rest of the role eliminations set to take place throughout F2027.
Senua and State of Decay 3 Survive XBOX Restructuring
The four studios leaving XBOX are: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs. Compulsion Games and Double Fine will revert to private ownership and transition to independent studios for their next games, while Undead Labs and Ninja Theory now have new owners.
XBOX is also making sweeping reductions across many of their other studios and will be focusing on developing higher priority projects. These reductions will affect Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios, but Sharma has stated none of XBOX's first-party publicly announced games will be canceled as a...
