Overview
- Last week Xbox cut about 268 roles, continuing a reduction that Microsoft announced in July to remove roughly 3,200 positions across its gaming division through fiscal 2027.
- The reorganisation has shifted studio responsibility and publishing: Activision will oversee Halo plus Rare and World’s Edge, Obsidian now reports to Bethesda, Turn 10 merged with Playground Games, and Compulsion, Double Fine and Undead Labs were divested while Ninja Theory faces possible closure.
- Satya Nadella publicly praised the changes led by Xbox chief Asha Sharma, said he feels “fantastic” about Xbox’s IP, and urged the team to invent a sustainable business model to reach more players and return to growth next year.
- Microsoft has framed the reset as a financial necessity after Xbox revenue and content and services revenue fell about 10 percent in the most recent fiscal quarter.
- Developers and industry observers warn the cuts risk talent loss, slower or reduced game releases and uncertainty for employees, and the key tests going forward will be whether a smaller Xbox can meet its release targets and how the new studio structure affects major franchises like Halo.