Overview
- Xbox announced the restructuring on Monday, describing it as the company’s largest reset and saying it will reduce staff by about 20 percent, or roughly 3,200 roles.
- As part of the plan Xbox will divest five development studios, with Double Fine and Compulsion confirmed to return to independent management while keeping ownership of their game catalogs.
- Xbox confirmed Ninja Theory and Undead Labs have been sold with buyers not yet disclosed, and said Arkane Lyon is negotiating an exit from Microsoft.
- Company leadership framed the changes as a correction after rapid acquisition growth that did not deliver expected returns, saying past investments lost money and that Xbox is not the best home for every studio type.
- The moves strip financial backing from smaller teams even as they regain creative control, raising questions about their long-term viability and signaling a narrower, franchise-focused strategy for Xbox going forward.