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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.

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Xbox Restructures, Divests Studios Amid Layoffs

Xbox is undergoing a significant restructuring, including substantial layoffs and the divestment of several internal studios. CEO Asha Sharma cited spreading resources too thin as a reason for the changes. Microsoft is also reportedly considering making Xbox a wholly-owned subsidiary to improve performance and accelerate first-party game releases.

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