Microsoft's gaming division has announced a new round of layoffs, cutting 268 positions across its first-party studios. This follows a significant reduction of 1,600 roles earlier this year. Xbox executive Matt Booty indicated that these cuts represent approximately 75 percent of the company's planned workforce reductions. Alongside the layoffs, Microsoft is implementing a major organizational restructuring. The Halo franchise is moving under the Activision umbrella, while other studios like Bethesda are absorbing teams such as Obsidian. Additionally, the company is divesting from several subsidiaries, including Compulsion, Double Fine, and Undead Labs. The future of Ninja Theory remains uncertain as negotiations continue, and Arkane is currently in talks regarding a potential spin-off. These changes occur amidst ongoing criticism regarding Game Pass limitations and broader concerns about the stability of the Xbox brand under current leadership.
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