Xbox Hit With Major Changes Amid Layoffs and Studio Spin-Offs

Xbox is set for major internal changes as Microsoft moves ahead with layoffs and potential studio spin-offs, reflecting broader turbulence in the gaming industry. CNBC reports Microsoft will eliminate 4,800 jobs across the company, with 3,200 positions tied to Xbox over the period through 2027. About 1,600 roles are expected to be cut immediately, while the remainder will occur over the next year as Microsoft restructures. Xbox CEO Asha Sharma told employees that the transition would be staggered because “it is not possible” to make all changes in a single day. She said the company expects to return to growth in 2027, referencing Xbox’s franchises and global studios. The changes come amid industry shifts, including a separate move by Sony and PlayStation away from physical media, cited in the report.