Microsoft Gaming CEO Asha Sharma has detailed a sweeping "reset" of the company's gaming division, citing unsustainable profit margins that lag significantly behind industry standards. The restructuring involves 3,200 layoffs scheduled through the 2027 fiscal year, with half of those reductions taking effect immediately. To further streamline operations, the company is slashing management layers to a maximum of five and introducing a new Chief Operating Officer role.
As part of this divestment, four prominent studios are departing the Xbox umbrella. Compulsion Games and Double Fine Productions will regain their independence, retaining their respective intellectual properties. Meanwhile, Ninja Theory and Undead Labs are set to move under new, currently undisclosed ownership. Additionally, the French branch of Arkane has entered consultation with its Works Council to evaluate its own strategic future.
Despite the scale of these changes, Microsoft emphasized that its current pipeline of first-party titles remains intact. High-profile subsidiaries like Mojang and King will remain under the core Microsoft Gaming structure, reporting directly to the CEO. Development continues on the next-generation console, internally codenamed "Project Helix," which is designed to bridge the gap between Xbox and PC gaming ecosystems.
Source: Anime News Network
