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Xbox Announces Biggest Restructure in Company History as Thousands of Jobs Are Cut | Invision Game Community
Xbox is undergoing its largest restructuring, involving approximately 3,200 job cuts and changes to its studio structure. Xbox President Asha Sharma stated the current business model is unsustainable due to increasing costs and slower-than-expected growth. Several studios like Compulsion Games and Double Fine Productions will become independent, while others like Ninja Theory and Undead Labs are expected to transition to new ownership.
Xbox acquisitions have been a disaster: "In a typical year, we lost 64 cents for every dollar we invested"
Xbox CEO Asha Sharma revealed that Microsoft's aggressive acquisition strategy has resulted in significant financial losses, with the company losing 64 cents for every dollar invested in typical years since 2018. In response to this unsustainable model, Xbox is undergoing a reset, leading to layoffs and the divestment of several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, while others like Arkane Studios are reviewing strategic options.
Xbox cuts 3,200 staff as four studios to exit Microsoft – Arkane under review
Microsoft has announced significant layoffs affecting approximately 3,200 employees within its Xbox division, with 1,600 staff being let go immediately. Four studios, including Ninja Theory and Undead Labs, are becoming independent or being sold off, while Arkane Lyon's future is under review. This restructuring follows a period of rapid developer acquisitions and aims to refocus Xbox's business strategy.
Xbox are parting ways with Double Fine, Arkane, Undead Labs, Compulsion, and Ninja Theory in the course of thousands of layoffs
Microsoft has announced significant layoffs affecting 3200 employees and is parting ways with five Xbox-owned studios: Double Fine, Arkane, Undead Labs, Compulsion Games, and Ninja Theory. Some studios will become independent or find new ownership, while Arkane's future is uncertain. CEO Asha Sharma cited rising costs, underperforming acquisitions, and a challenging industry landscape as reasons for the "reset."
Microsoft confirms 3200 layoffs and four studio departures
Microsoft has confirmed significant layoffs affecting approximately 3,200 employees across its Xbox business, including 1,600 on the day of the announcement. Four studios, Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, will either become independent or find new ownership, while Arkane Studios faces strategic review. Xbox CEO Asha Sharma cited slower-than-expected growth in Game Pass, multi-platform strategies, and content portfolio as reasons for the restructuring, which will also involve reducing management layers.
UK software sales chart for the week ending July 4, 2026 – Rhythm Heaven Groove debuts in the top 5, Star Fox still going strong
The latest UK software sales chart for the week ending July 4, 2026, shows Rhythm Heaven Groove debuting at number 5 and Star Fox holding strong at number 4. EA SPORTS FC 26 leads the chart, with a variety of other titles from Nintendo, Capcom, and Electronic Arts filling out the top 20.
Xbox cutting 3,200 jobs and parting ways with Double Fine, Compulsion, Ninja Theory, and Undead Labs
Microsoft has initiated a significant restructure of its Xbox division, eliminating 3,200 jobs and parting ways with four studios: Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. New Xbox CEO Asha Sharma stated the cuts are necessary due to underperforming bets on Xbox Game Pass and multiplatform releases, as well as a severe hardware crisis impacting component prices. The company aims to streamline operations, reduce management layers, and foster a more efficient development environment.
Microsoft announces 3200 layoffs and four studio departures in "most significant" Xbox restructuring in history
Microsoft has announced a significant restructuring of its Xbox division, including approximately 3,200 layoffs and the departure of four studios. Compulsion Games and Double Fine Productions will become independent, while Ninja Theory and Undead Labs are seeking new ownership. Arkane Studios is also under review. Xbox CEO Asha Sharma cited business performance and industry challenges as reasons for the changes.
War Fantasy is “the anti–Call of Duty” and delivers a kick to the groin of the games industry’s relentless gamification of conflict.
War Fantasy, developed by a former Call of Duty developer, is described as an "anti Call of Duty" game that critiques the gamification of conflict. The game aims to expose how war is marketed to players and highlights the tragic cost of conflict, contrasting with typical war game narratives.
Games Inbox: Is Nintendo Switch 2 and PC the perfect combination?
Readers discuss the potential of the Nintendo Switch 2 combined with PC gaming as a strong alternative to PlayStation and Xbox, especially in light of Sony's move towards digital-only releases. The conversation also touches on the importance of physical media for game preservation and the rising costs of PC hardware components like RAM and SSDs.
What on earth is happening to the video games industry? - Reader's Feature
A reader expresses frustration with the current state of the video game industry, citing issues like mass layoffs, Sony's focus on live service games, and Microsoft's acquisition strategy. Concerns are raised about the move towards digital-only sales and the potential high cost of future consoles like the PlayStation 6. Despite these criticisms, the reader acknowledges the strength of the indie scene and the resurgence of companies like Capcom.
Weekend PC Download Deals for July 3: Steam Summer Sale continues
The Steam Summer Sale and other PC gaming storefronts are offering numerous deals on a wide variety of titles. This includes discounts on major releases, indie games, and bundles across platforms like Steam, Epic Games Store, GOG, and Humble Bundle. Several retailers are participating, with prices and availability varying.
'Your code is physically yours, forever. Until you lose it, let's be real': Github, wagging its finger at Sony's own goal, is offering CD-ROMs of your code for a few days
Microsoft-owned GitHub is offering users a CD-ROM of their public code repositories for a limited time, a move seen as a jab at Sony's perceived shift towards digital-only game distribution. This limited-time promotion, available from July 2-6, 2026, allows the first 1,000 eligible users to receive a physical copy of their code. The article also touches on Microsoft's own efforts in digital preservation and potential layoffs within its gaming division.
Valve's aim for a console-like experience with its Steam Machine lands a little too close for comfort as one of the first cases of 'Red Line of Death' comes to light
A user has reported the first instance of a 'Red Line of Death' hardware failure on Valve's Steam Machine, similar to the Xbox 360's issue. The failure, indicated by red LEDs, occurred after a software update while playing No Man's Sky. While the user has contacted Valve for support, the incident highlights potential hardware reliability concerns for the console-like PC.
Does anyone actually want new consoles?
The article questions the demand for new console generations, citing current high prices, component shortages exacerbated by AI, and a general apathy towards incremental hardware upgrades. It suggests that the high cost of living and the availability of existing consoles like the PlayStation 5 and Xbox Series X, which still feel largely untapped, make a new generation financially unappealing for consumers. Furthermore, the lack of compelling exclusive software and the industry's focus on live service games and layoffs further diminish the perceived value of new hardware.
GTA6 devs accuse Rockstar of crunch and pay inequity, Spanish Ubisoft devs go on strike
Developers at Rockstar Games have accused the studio of crunch, pay inequity, and using legal loopholes to bypass UK labor laws, amidst the development of Grand Theft Auto VI. Meanwhile, Ubisoft Barcelona developers in Spain have gone on strike over restructuring and job losses, demanding better working conditions and job security. A new fund has also been established to financially assist game developers who have lost their jobs.
Digging into SAG-AFTRA’s Stellar Win With Sarah Elmaleh
Actor and SAG-AFTRA Interactive Media Negotiating Committee chair Sarah Elmaleh discusses the recent Interactive Media Agreement that ended an 11-month strike. The deal includes improved actor pay, new safety standards, and terms for the use of generative AI, giving actors more control over their data. Elmaleh shares her experience navigating the three-year negotiation process.
Another giant US company is looking to expand into gaming claims report
NBCUniversal, the company behind Universal Pictures and the streaming service Peacock, is reportedly considering expanding into the video game business. This potential move comes as the company is preparing for a spin-off from Comcast. While no specific plans have been revealed, NBCUniversal is assessing various growth opportunities, with gaming being one of them.
Millie Bobby Brown is hyped for GTA 6 even though she never does crimes
Actress Millie Bobby Brown expressed her excitement for Grand Theft Auto 6, calling the series a 'passion' despite her tendency to play games by strictly following rules, such as stopping at red lights. She admitted to playing Grand Theft Auto 5 in a manner akin to The Sims, a habit her husband has teased her about. The article also touches on the potential for celebrity cameos in future Rockstar Games titles.
Sony kills game ownership and says it's all your fault
Sony is phasing out physical game discs for new PlayStation titles by 2028, effectively ending the concept of game ownership as players will no longer be able to buy, sell, or preserve physical copies. This move, driven by business decisions and a lack of competition, raises concerns about game preservation, consumer rights, and the loss of tangible connection to games and their creators.
