- Xbox is reportedly slashing hundreds of jobs in the coming week.
- Multiple smaller studios will also be consolidated with bigger ones to combine resources and projects.
- This initiative comes after Xbox already laid off over 1600 developers in June this year.
Microsoft’s gaming brand has seen massive changes under new leadership, as Asha Sharma aims to turn Xbox into the world’s best entertainment company over time. Xbox now aims to focus on flagship IPs and listen to player feedback before making big decisions.
However, the company is also drastically restructuring its gaming business. Multiple reports now claim that Asha Sharma is preparing to cut hundreds of jobs in the coming week following earlier layoffs.
Additionally, multiple smaller teams will be consolidated with bigger studios as part of the reorganization.
Why it matters: Xbox will slash more jobs and restructure its gaming business under new leadership following the big reset earlier this year. The move is controversial, as it’s unclear whether resizing so drastically will help Xbox bounce back to its glory days in the first place.
As reported by The Information, the move to consolidate or merge teams comes in an effort to combine resources, projects, and funding together under single major studios.
For example, it has already been rumored that the Halo IP could be moved under Activision Blizzard in the near future. However, reliable insider NateTheHate claims that more than just Halo will be moving under Activision Blizzard King.
Similarly, Nate also added that other studios are expected to move under different companies within Xbox and Microsoft. So this restructuring will likely alter the entire Xbox gaming business as we know it.
Lastly, another trusted insider, Jason Schreier, also claimed in a podcast that Blizzard will be hit with layoffs soon, according to what he heard at BlizzCon earlier this month.
For those not in the know, Xbox let go of a staggering 1600 developers as part of its ‘big reset’ in June this year.
Asha Sharma also aims to reduce the Xbox headcount by over 3000 developers by the end of FY27, so these looming layoffs will help the leadership hit these controversial figures.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devotedly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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