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The Latest Breaking News from Xbox

Exclusive: Xbox's CEO on 3,200 layoffs, four studios cut, and her blunt warning that 'we spread ourselves too thin'

Asha Sharma unveiled sweeping changes at the Microsoft unit Monday, including downsizing that will impact 20% of staff.

Fortune

Arkane’s Blade project is reportedly "running over budget", and the studio’s future at Xbox is now in question

Fresh reports claim Marvel's Blade is running over budget and has been delayed, while Microsoft reportedly works to secure Arkane's future amid its wider Xbox restructuring.

Windows Central

Xbox in Chaos: Why Microsoft Just Axed 4,800 Jobs

Microsoft Corp. (NASDAQ:MSFT) stock fell more than 1% on Monday after the company unveiled another round of layoffs, even as technology stocks rallied. The Nasdaq gained 1.83%, and the S&P 500 rose 0.83%.

Benzinga

From analysis to the latest developments in health,
read the most diverse news in one place.

Elder Scrolls Online developer left reeling by Xbox layoffs—with teams gutted, senior talent gone, and roadmaps 'shifting' as a result

A grim outcome from Xbox's latest round of reaping.

PC Gamer

Bethesda Game Studios and ZeniMax hit hard by Xbox layoffs, says union

ZeniMax Online Studios and id Software have survived the latest bloodbath at Microsoft, but it sounds like they've been cut deeply.

PC Gamer

My plea to Xbox fans of the divested studios — put your money where your mouth is

Xbox's freed studios have a lifeline. Now I implore fans to put their money where their mouth is and buy their games.

Windows Central

Microsoft shares fall over 1% after company announces to layoff 4,800

Microsoft announced significant job cuts affecting approximately 4,800 employees globally. The Xbox gaming division will experience the deepest reductions, with around 3,200 roles eliminated. This restructuring follows substantial investments in gaming, including the Activision Blizzard acquisition.

The Economic Times

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Microsoft cuts 4,800 jobs with Xbox facing its biggest shake-up

About 3,200 gaming jobs are set to be cut at Xbox over the coming fiscal year.

Euronews

I called this flight sim controller the coolest thing I’d ever seen for PC gaming — now it's coming to Xbox to fix its biggest downside

Honeycomb's Echo Aviation Controller adds Xbox support, delivering drift‑free sensors and deeper MSFS immersion while fixing its only real downside.

Windows Central

Doom, Wolfenstein, and Quake will reportedly join Fallout and Elder Scrolls as Bethesda owner ZeniMax switches focus to its largest franchises amid Xbox restructure

Doom and Quake developer id Software is reportedly facing "significant" layoffs

GamesRadar

Arkane temporarily spared in Xbox bloodbath thanks to French law, but its future is up in the air

Putting all my hopes and dreams on an independent Arkane.

PC Gamer

Gaming's grim year continues with the Xbox reset, and it might not get better quick

Could things eventually settle down?

Microsoft cuts 4,800 jobs as it revamps Xbox

Microsoft said Monday it was eliminating about 4,800 jobs -- roughly two percent of its global workforce -- in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division. The cuts include the deepest overhaul in Xbox's history, with approximately 3,200 gaming jobs to be…

The Economic Times

Microsoft 'resets' Xbox by cutting 3,200 jobs this year, divesting five game studios — firm cites 'margins that are 3-10x lower than comparable platform and publishing businesses'

Xbox CEO Asha Sharma announced that Microsoft's gaming division will cut 3,200 jobs throughout FY27 and is spinning out studios but not canceling any games.

Tom’s Hardware

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GamesRadar

Xbox acquisitions have been a disaster: "In a typical year, we lost 64 cents for every dollar we invested"

"We have also learned that we are not the best home for every type of studio"

Windows Central

State of Decay 3 reportedly isn’t obligated to launch on Xbox Game Pass under new ownership

State of Decay 3 could have a very different future following Xbox's reported sale of Undead Labs. According to Game File, the game will not be contractually required to launch on Xbox Game Pass, raising questions about its eventual release strategy.

PC Gamer

Xbox's CEO wants its games to cater to 'more than a billion people each day', or 24 times more than the peak population of Steam, which is delusional

Alternate title: Does Xbox CEO Asha Sharma know what a billion is?

Windows Central

"AI is changing how work gets done": Microsoft insists 4,800 layoffs aren't because of AI, but points to a shifting workforce

Microsoft announced 4,800 layoffs, heavily impacting its Xbox and gaming-related divisions. While Microsoft's Amy Coleman clarified these roles are not being eliminated because of AI, her letter to employees emphasized how automation is fundamentally changing work.

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PC Gamer

Compulsion Games is returning to independent management amid sweeping Xbox reorganization: 'Our immediate priority is to support our team'

Evading its previously-reported closure, Compulsion will retain its IP rights as it transitions to independent ownership.

The Independent UK

Microsoft lays off thousands of employees as Xbox CEO says business is ‘not healthy’

Microsoft eliminated approximately 2.1% of its global workforce

TechRadar

Xbox announces 'the most significant restructure' in its history — and it'll cause 1,600 'painful' job losses today and numerous studio sales

The rumors were true: Xbox announces thousands of job layoffs and some serious studio restructuring

Windows Central

Xbox hardware "is safe" from mass layoffs with a focus on innovation to reduce the material cost of Helix

Xbox hardware dodges mass cuts. Next-gen Project Helix is safe as engineers innovate to lower material costs.

Destructoid

Every studio affected by Xbox’s ‘reset’ – July 2026 layoffs

A dark day.

GamesRadar

Xbox parts ways with 4 studios, with South of Midnight and Psychonauts devs going independent as Arkane begins "required consultation" to "review potential strategic options"

This comes as part of the "most significant restructure in Xbox history," per CEO Asha Sharma

PC Gamer

Xbox is laying off 3,200 people and dumping 4 studios in 'the most significant restructure in Xbox history'

Compulsion, Double Fine, Ninja Theory, and Undead Labs are out, and the future doesn't sound very good for Arkane either.

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