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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.
Xbox to reduce workforce by 3,200, five studios to be divested
Xbox announced significant workforce reductions affecting 3,200 employees and the divestment of five studios: Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane. Compulsion Games and Double Fine will become independent, while Ninja Theory and Undead Labs are set for new ownership to continue development on their respective projects. Xbox CEO Asha Sharma stated the company is refocusing its strategy, acknowledging that it cannot be the best home for every studio.
Microsoft is cutting 3,200 Xbox employees, and half of them will be eliminated today in "the most significant…
Microsoft has initiated significant layoffs within its Xbox division, with approximately 1,600 employees being cut on July 6, 2024, as part of a larger restructuring plan affecting around 3,200 roles by the end of fiscal year 2027. This reduction includes the closure or sale of four studios: Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. The company is also considering strategic options for Arkane Studios.
Xbox parts ways with 4 studios, with South of Midnight and Psychonauts devs going independent as Arkane begins "required consultation" to "review potential strategic options"
Xbox is undergoing a significant restructure, leading to four of its studios becoming independent or finding new ownership. Compulsion Games and Double Fine Productions will transition to independent studios, while Ninja Theory and Undead Labs will be acquired by new owners. Additionally, Arkane Studios is entering a consultation period to review its strategic options.
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.
Xbox Layoffs, Studio Closures, And Spin-Offs: Everything Announced Today
Microsoft has announced significant layoffs and studio restructuring within its Xbox division, impacting 3,200 employees over the current financial year, with 1,600 layoffs starting immediately. Several studios, including Compulsion Games and Double Fine Productions, are transitioning back to independent management, while others like Ninja Theory and Undead Labs are seeking new ownership. The company cited financial underperformance and a need to reset its strategy, focusing investment on higher-priority games and core IPs.
Resetting XBOX
Xbox is undergoing its most significant restructure in history, involving approximately 3,200 job reductions throughout fiscal year 2027, with 1,600 roles eliminated immediately. Four studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are in terms to join new ownership. This strategic reset aims to improve profitability and focus on core businesses, with a simplified organizational structure and a new Chief Operating Officer, Helen Chiang, overseeing operations.
Xbox Boss Asha Sharma Announces 3,200 Layoffs, Including 1,600 Today, With 4 Studios Leaving for New Management — Read the Email to Staff in Full
Xbox boss Asha Sharma announced that Microsoft will be laying off 3,200 employees across the Xbox division during the current financial year, with 1,600 of those occurring immediately. As part of this restructure, four studios will be transferred to new management, and one studio is under consultation regarding its future.
"This is all about control" - industry experts speak on Sony's move away from discs, and what this means for the PlayStation 6 and the cost of games
Sony has announced it will cease production of physical game discs in January 2028, a move industry experts believe signals a disc-less PlayStation 6 likely launching in 2028. This decision is expected to reduce console manufacturing costs and shift the market further towards digital distribution, impacting game pricing and consumer ownership. While some see it as a necessary evolution, concerns remain about preservation and the second-hand market.
Halo Project Ekur Reportedly Cancelled, Team Shifted to Campaign Evolved in Summer 2025 – Rumor
Reports suggest that Halo Project Ekur has been cancelled, with its development team reportedly shifted to work on Halo: Campaign Evolved due to issues with the latter. The cancellation comes amidst rumors of layoffs at Xbox. Halo: Campaign Evolved is slated for release on July 28th for Xbox Series X/S, PlayStation 5, and PC.
Xbox Announces 3,200 Layoffs for Fiscal Year 2027, Four Studios to be Released
Xbox CEO Asha Sharma announced significant layoffs affecting approximately 3,200 employees, with 1,600 layoffs occurring immediately. Four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released. Sharma cited lower-than-comparable margins and industry hardware challenges as reasons for the restructuring, aiming to reset Xbox's business focus.
Wolfenstein 3 is in the Works, Marvel’s Blade Safe as Arkane Faces Restructuring – Rumor
Rumors suggest that Wolfenstein 3 is in development at MachineGames, which is reportedly safe following the success of Indiana Jones and the Great Circle. Marvel's Blade is also said to be proceeding at Arkane Studios, despite restructuring within the company. Jerk Gustafsson has been named president of Arkane, and further announcements regarding layoffs and the studio's new structure are expected.
Xbox Appoints Helen Chiang as COO, Studios to Only Have Maximum of 5 Management Layers
Xbox CEO Asha Sharma announced significant changes to the division's operational structure, including reducing management layers to a maximum of five and appointing Helen Chiang as the new Chief Operating Officer. These changes follow recent layoffs affecting approximately 1,200 employees, with plans for further reductions. The restructuring aims to streamline workflows, improve accountability, and refocus investment for future growth, while four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released from Xbox.
State of Decay 3 Could Skip Game Pass, Third-Party Funding Still Lives – Rumor
A report suggests that State of Decay 3 might not be a day one release on Xbox Game Pass, despite Xbox funding its development, as Undead Labs is reportedly under new ownership. The article also touches on the shifting priorities at Xbox regarding Game Pass funding for third-party developers and the perceived underinvestment in the Minecraft IP.
Xbox Layoffs Won’t Stop Work on Doom, Quake and Wolfenstein
Despite significant layoffs impacting Xbox and its ZeniMax Media subsidiaries, work on franchises like Doom, Quake, and Wolfenstein will continue. Xbox CEO Asha Sharma confirmed that ZeniMax will not be reduced to only developing Fallout and The Elder Scrolls. The company is also undergoing management restructuring to streamline decision-making processes.
Compulsion Games Confirms Retaining Rights to South of Midnight, We Happy Few After Xbox Split
Compulsion Games has confirmed it is returning to independence after its split from Xbox, retaining the rights to its titles South of Midnight, We Happy Few, and Contrast. This news comes amidst widespread layoffs at Xbox, with Compulsion's future now secure despite rumors of closure. The studio aims to continue creating unique games that tell important stories.
Why do Xbox and PlayStation hate video games and their customers? - Reader’s Feature
A reader expresses concern over the current state of the video games industry, citing recent negative news from Sony and anticipated issues from Microsoft. The author criticizes both companies for perceived anti-consumer practices, such as going all-digital and shutting down older online stores, while questioning the passion of executives compared to Nintendo. The piece laments the shift from competition to a perceived lack of incentive to please fans, suggesting games have become solely a means to extract money.
PlayStation goes all-digital, lessons learned for Square Enix, and what happens when fantasy projects collide with the…
Sony PlayStation will discontinue physical game disc production for new games starting January 2028, coinciding with the closure of the PlayStation Store on PS3 and Vita. Meanwhile, Cyberpunk 2077 has surpassed 40 million players, and CD Projekt Red is consolidating its brand. IO Interactive's fantasy RPG Project Fantasy faces uncertainty as Xbox funding has been pulled.
As major Xbox shake-ups loom, former Wolfenstein studio head is now seemingly in charge of Marvel's Blade developer…
Jerk Gustafsson, former co-founder and studio head of MachineGames, has seemingly taken over leadership of Arkane Lyon, the developer of Marvel's Blade. This change occurs amidst broader shake-ups at Xbox subsidiaries, with Arkane Lyon reportedly facing potential closure. The leadership shift, officially noted on June 30, suggests a potential restructuring for the studio.
Somehow, the $1,000 Asus ROG Ally Xbox X is the best value gaming handheld I can think of right now
Despite its initial high price, the ASUS ROG Ally Xbox X is now considered the best value handheld gaming PC due to current market conditions and rising prices of competitors like the Steam Deck OLED, Lenovo Legion Go, and MSI Claw. The article highlights the ROG Ally's strong performance with its AMD Ryzen Z2 Extreme APU and Windows operating system as key factors in its current appeal.
