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Xbox is laying off 3,200 people and dumping 4 studios

Xbox announced significant layoffs affecting approximately 3,200 employees and the restructuring of four studios: Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. While Compulsion and Double Fine will become independent, Ninja Theory and Undead Labs are being sold to new management. The company also confirmed reductions across Activision, Bethesda, Blizzard, King, Mojang, and Xbox Game Studios, with CEO Asha Sharma citing the business's unhealthy state and slower-than-expected growth from Game Pass and multi-platform releases.

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