Microsoft has announced a major restructuring of its Xbox division, resulting in 3,200 layoffs and the divestment of five acquired studios. New CEO Asha Sharma described this as a necessary 'reset' to simplify management layers and address the division's struggles, though no publicly announced first-party games are being cancelled.
Background
This event marks a significant pivot for Microsoft Gaming under new leadership, following previous consolidation efforts like the Activision Blizzard acquisition and earlier rounds of cuts in 2024 and 2025.
- Source
- Ars Technica
- Published
- Jul 7, 2026 at 12:01 AM
- Score
- 9.0 / 10