Microsoft needs to "reset Xbox," says Asha Sharma, as the company lays off 3,200 employees

Microsoft's Xbox division is undergoing significant restructuring, with approximately 3,200 employees being laid off throughout the 2027 fiscal year, including 1,600 immediately. CEO Asha Sharma stated the business is not healthy and operating at lower margins than comparable companies. Several studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are set to be acquired by new owners.

• COMPANY Microsoft
• COMPANY Ninja Theory
• GAME DOOM
• GAME We Happy Few
• GAME Senua
• COMPANY Compulsion Games
• GAME South of Midnight
• COMPANY Bethesda
• COMPANY Undead Labs
• COMPANY Xbox
• GAME Quake
• GAME Wolfenstein
• GAME Fallout