Microsoft Lays Off Thousands and Divests Four More Xbox Studios
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Microsoft announced 3,200 Xbox layoffs and the divestiture of four studios (Double Fine, Compulsion Games, Ninja Theory, Undead Labs) as part of a business reset — creators are debating whether this signals a failed acquisition strategy, a necessary shift away from Game Pass over-reliance, or a crisis-driven response to poor Xbox hardware and financial performance.
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The coverage — 4 videos
Xbox Reset Situation
Xbox CEO Asha announces 3,200 layoffs and studio divestitures (Double Fine, Compulsion, Ninja Theory, Undead Labs) with a management flattening from 14 to ≤5 layers, which the creator calls a 'Morbius level flop' and a 'shameful, pitiful state' but deems the best possible outcome due to no studio closures.
Xbox dropped a BOMBSHELL
Microsoft's layoff of 1,600 Xbox employees and divestiture of Double Fine, Compulsion Games, Ninja Theory, and Undead Labs is framed by the creator as an admission that the Game Pass acquisition strategy failed, with new leadership's restructuring seen as a desperate reset.
The Xbox Reset Gets Ugly & Nintendo Reveals Big Switch 2 Hardware Changes | News Wave
Microsoft Xbox announces 1,600 immediate layoffs, 3,200 total cuts, spins off Compulsion Games and Double Fine as independent studios, and begins a 100-day 'reset' amid unhealthy margins and a hardware crisis, with the creator arguing Game Pass has hit a ceiling on Xbox consoles and Microsoft is shifting away from it after Call of Duty failed to boost subscriptions.
The Xbox Shutdowns Get Worse & Sony Just Teased A New Handheld? | News Wave
Microsoft's reported plan to cancel Marvel's Blade and lay off 1,000 employees is framed as a devastating blow to the Blade fandom and a historic gaming industry cut, with the creator reacting to breaking news from Tom Warren at The Verge.