The layoffs, which are being described as an Xbox “reset” moment, will impact around 1,600 Xbox employees, according to an internal memo from Xbox CEO Asha Sharma
Microsoft is planning to eliminate a total of around 20 percent of Xbox jobs by the end of the financial year in July 2027
Double Fine and Compulsion Games are going independent, and Microsoft is also selling Ninja Theory and Undead Labs
Double Fine and Compulsion Games have been allowed to become independant along with "their IP, catalog and runway for this next games"
Microsoft is also weighing up selling or closing another Xbox studio; Arkane Studio. “In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options,” says Sharma
Other Xbox studios will also be impacted by layoffs across the board with particular focus on Zenimax / Bethesda studios