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Xbox Reportedly to Cut Hundreds and Consolidate Multiple Studios

The move is intended to finish CEO Asha Sharma’s 3,200-job 'XBOX Reset' to improve profitability by concentrating resources on flagship franchises.

Overview

  • The Information reported Tuesday that Xbox plans to cut hundreds of roles this week and to consolidate several game studios, a claim carried by multiple industry outlets.
  • Microsoft has not issued an official confirmation and has not published a list of which studios or how many positions will be affected.
  • Industry reporters and leakers have flagged Blizzard and Halo-related teams as likely targets, and some leaks suggest Halo oversight could move to Activision.
  • If confirmed, the new cuts would be counted toward the 3,200 total job reductions Asha Sharma announced in July, about 1,600 of which were already made earlier in 2026.
  • The consolidation would shift development toward fewer, larger teams and flagship franchises, raising immediate job risk for staff between projects and changing who manages key series across Xbox, Bethesda, Activision, and Blizzard.