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Layoffs

Ongoing coverage on Layoffs.

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Massively OverpoweredVery negative

Microsoft Xbox is shedding 3200 games industry workers, Blizzard and ZeniMax are affected

Microsoft's Xbox division is undergoing significant layoffs, cutting 3,200 jobs, which represents 20% of its workforce. Affected studios include Blizzard Entertainment and ZeniMax Media, with Ninja Theory, Undead Labs, Double Fine, and Compulsion Games being sold or divested. Xbox CEO Asha Sharma stated the business is not healthy and requires a reset, while acknowledging the unlikelihood of achieving a daily active user count of 1 billion.

GamespotVery negative

Xbox Layoffs Hit Id Software And ZeniMax As Focus Shifts To Bigger Franchises

Xbox is undergoing its most significant restructure in history, with approximately 20% of its workforce being laid off. This includes significant staff reductions at Id Software and ZeniMax Online Studios, though these developers will remain operational. Xbox leadership stated the company will focus on higher-priority projects and major franchises, assuring that no previously announced first-party games will be canceled as part of these changes.

Invision CommunityNegative

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.

Retro GamerVery negative

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.

EurogamerNegative

Xbox CEO Asha Sharma wants the company to "entertain more than a billion people" every day: here's why that's a deeply unrealistic thing to say

Xbox CEO Asha Sharma stated her ambition for the company to entertain over a billion people daily, a goal that significantly exceeds current industry peaks like Fortnite and Roblox. This statement follows news of Xbox studios splitting off and approximately 3,600 layoffs. While challenging, Sharma believes this can be achieved, potentially leveraging King's mobile success with Candy Crush to reach the ambitious target.

GamespotNeutral

No Announced Xbox Games Are Getting Axed In Microsoft Layoffs, Company Says

Microsoft has announced significant layoffs affecting 1,600 employees at Xbox, with another 1,600 planned over the next year. Despite these cuts and studio sales, the company stated that no already announced first-party Xbox games are being canceled. Titles like Clockwork Revolution, Gears of War: E-Day, Hellblade, and State of Decay 3 are still confirmed to be in development.

PC GamesNNegative

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.

IGNNeutral

Double Fine and Compulsion Confirm Status Following Xbox Cuts, Get to Keep Franchises Such as Psychonauts and South of Midnight

Following significant layoffs by Xbox, Double Fine and Compulsion Games have confirmed they will continue as independent studios. Both companies will retain ownership of their respective franchises, including Psychonauts and South of Midnight.

IGNVery negative

The Most Significant Restructure in Xbox History: Live Report

Xbox is undergoing a significant restructuring, which includes layoffs affecting staff, studios, and games. This live report will cover all the developing news surrounding these changes within the company.

PC GamerPositive

Compulsion Games is returning to independent management amid sweeping Xbox reorganization: 'Our immediate priority…

Compulsion Games is returning to independent management following a significant reorganization at Xbox and Microsoft, which includes widespread layoffs. The studio will retain ownership of its intellectual property, including South of Midnight, We Happy Few, and Contrast. This move comes after reports suggested the studio was at risk of closure.

Rock Paper ShotgunNeutral

ZeniMax's pivot to big series amid Xbox cuts reportedly isn't a death knell for Doom, Quake and Wolfenstein

Xbox has announced significant layoffs and studio restructuring, affecting studios like Double Fine and Arkane, while shifting focus towards established franchises such as Fallout and The Elder Scrolls for ZeniMax Media. Despite these changes, core series like Doom, Quake, and Wolfenstein will continue development. Mojang Studios will now report directly to CEO Asha Sharma, with increased investment planned for Minecraft.

Tech RadarVery negative

Xbox announces 'the most significant restructure' in its history — and it'll cause 1,600 'painful' job losses today and numerous studio sales

Microsoft's Xbox division is undergoing its most significant restructure, resulting in approximately 1,600 job losses today and a total of 3,200 over the fiscal year. Four studios, Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs, are also being sold or will gain new ownership as part of the changes. Xbox CEO Asha Sharma cited unhealthy business margins and slower-than-expected growth in areas like Game Pass and multi-platform releases as reasons for the cuts.

Metro UKVery negative

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.

GamespotVery negative

State Of Decay And Hellblade Devs Are Being Sold, But Buyers Remain Mysterious For Now

Microsoft's Xbox division is selling off development studios Undead Labs and Ninja Theory as part of a larger restructuring that includes significant layoffs. While the buyers remain undisclosed, these studios will continue to work on their respective titles, Senua and State of Decay 3. Additionally, Compulsion Games and Double Fine are becoming independent, and Arkane's French studio is undergoing consultation for potential strategic options.

Rock Paper ShotgunVery negative

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."

The Sixth AxisNegative

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.

EngadgetVery negative

Xbox confirms plans to lay off 3,200 workers over the next year

Xbox has confirmed plans to lay off 3,200 workers over the next year as part of a significant restructuring effort. This move impacts a substantial portion of its workforce.

PC GamerVery negative

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.

Shack NewsNegative

Xbox confirms mass layoffs, Double Fine Productions and Compulsion Games to go independent

Xbox CEO Asha Sharma announced significant changes, including layoffs affecting 3,200 employees and four studios becoming independent or sold. Compulsion Games and Double Fine Productions are now independent, retaining their IP rights, while Ninja Theory and Undead Labs have been sold to new owners. Sharma cited an unhealthy business model with low profit margins as the reason for these drastic measures.

Gamedeveloper.comVery negative

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.