Microsoft is shutting down or selling at least three Xbox studios—Ninja Theory, Double Fine, and Compulsion Games—as the gaming division steels itself for layoffs under new CEO Asha Sharma's "reset." The Verge and Bloomberg confirmed the moves on Monday, the same day two senior Xbox Game Studios leaders announced their exits.

More big changes under Asha Sharma’s leadership.

Microsoft's Xbox division plans major studio closures and around 1,000 layoffs under new CEO Asha Sharma after revenue dropped roughly $500 million