Microsoft Cuts 3,200 Gaming Jobs, Closes Five Xbox Studios
Microsoft has announced significant restructuring within its Xbox gaming division, cutting approximately 3,200 positions—roughly 20% of the gaming workforce—and closing five development studios.
The layoffs mark one of the largest workforce reductions in the company's gaming history and signal a strategic shift toward concentrating resources on the division's most prominent franchises. Microsoft has not publicly named which specific studios are being affected by the closures.
The move comes as the company seeks to streamline its gaming operations following the 2023 acquisition of Activision Blizzard. Industry analysts suggest the restructuring reflects broader challenges in the console gaming market, where development costs have risen substantially while competition intensifies across platforms.