Xbox Restructures, Sheds Five Studios and 3,200 Employees
Xbox is undergoing a significant restructuring, impacting 3,200 employees across the division. Five studios, including Ninja Theory and Double Fine, are being divested or becoming independent. This move is part of a strategic reset, with leadership citing an unsustainable business model.
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- Microsoft Slashes XBOX Workforce; Sheds StudiosXbox boss Asha Sharma announced significant workforce reductions and studio closures, stating that the current business model is 'not healthy.' This move is part of a broader 'reset' for the Xbox division.
Xbox to reduce workforce by 3,200, five studios to be divestedXbox 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.