Continuing the negative news since last week’s PlayStation announces of no physical media starting 2028 and PlayStation Store closures, Xbox announces a massive reconstruction to start the week. Microsoft’s Xbox layoffs 3,200 employees throughout the fiscal 2027 with 1,600 roles today. Xbox CEO Asha Sharma also announced four studios will leave the Xbox company. Double Fine Productions and Compulsion Games will return as independent managements with their current catalogs and intellectual property (IP). Ninja Theory and Undead Labs studios are set to be sold to new ownership.

It’s a rest to the company as expectations have been low and cuts are said to be made. Game Pass, multi-platform releasesm and a broad portfolio content have not met sales. In addition, the company is shifting investment to higher priority projects such as Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios. Asha Sharma confirms that none of the first party publicly announced games or projects are being cancelled.

In terms with the work inside the company, work passes through as many as 14 layers of management, which is wild to hear. A 40% increase since the start of this generation. Xbox’s CEO looks to clean house and rebuild the brand to what made it popular years ago.

Additional information regarding Asha Sharma’s letter is available to read on Xbox’s official news website, Xbox Wire.

Those who were effected of the massive layoff, hopefully they can bounce off their feet and at least were given a severance package.

Source: Xbox Wire