Microsoft’s Xbox division is eliminating roughly 3,200 positions and either selling or spinning off five game development studios, marking one of the largest restructuring efforts the gaming industry has seen in recent memory. The cuts span Xbox, sales, and consulting roles, and the affected studios include Ninja Theory, Double Fine, Compulsion Games, Undead Labs, and Arkane Lyon.
The moves began executing around July 6, coinciding with the start of Microsoft’s new fiscal year.
What’s actually happening
The five studios on the chopping block aren’t necessarily shutting down entirely. Reports indicate that some are entering negotiations for spin-offs rather than facing outright closure, which means there’s a window where these teams could find new homes or operate independently.
At Ninja Theory, approximately 135 jobs are at risk. Double Fine could lose around 100 positions. Compulsion Games faces the loss of close to 90 roles.
