Business · 1h ago
Microsoft slashes 3,200 Xbox jobs, spins off five game studios
Microsoft's Xbox division will cut 3,200 jobs over FY27 and divest five game studios, citing margins 3-10x lower than comparable platform businesses. The cuts are part of a broader 'reset' but no game cancellations are planned. CEO Asha Sharma announced the moves, which follow earlier layoffs in 2024.
Meridian48 take
The layoffs underscore Microsoft's struggle to make Xbox profitable despite its massive Game Pass push, raising questions about the long-term viability of its gaming strategy.
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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' →
Tom's Hardware
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