Microsoft cuts 4,800 jobs with 3,200 at Xbox as margins lag competitors. Here's what the largest Xbox restructuring means for gaming and crypto investors.

Microsoft's Xbox is cutting 3,200 jobs and divesting five studios as CEO Asha Sharma restructures the gaming business to cut costs and focus on bigger games.

The move will affect the company's gaming division, which has been facing the outcome of a "not healthy" business model. The jobs cut will not be replaced by AI, Microsoft's VP…