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Microsoft is selling off four Xbox studios as part of significant gaming cuts
The Verge • • business
Key Points:
- Xbox is undergoing its largest restructure in history, with plans to reduce the workforce by approximately 3,200 employees throughout FY27, including 1,600 role eliminations immediately and four studios transitioning to new management.
- The company is resetting its content portfolio by returning Compulsion Games and Double Fine Productions to independent status, transferring Ninja Theory and Undead Labs to new ownership, and exploring strategic options for Arkane, while maintaining all publicly announced projects.
- Xbox will simplify its platform organization by reducing management layers to no more than five, streamlining workflows, and cutting vendor spending by 50% to improve decision-making and accountability.
- Helen Chiang has been promoted to Chief Operating Officer to unify Xbox’s content, hardware, platform, and services under one operating model aimed at clearer investment decisions and stronger accountability.
- Despite the challenges, Xbox plans to invest heavily with greater focus and discipline to achieve growth in 2027 and aims to entertain over a billion people daily while fostering creativity and connection in gaming’s future.
