{"rewrite":{"id":"r_1cf74e0f5cd8e1e8b1decfbc","clusterId":"c_d783fb969c3900bf49eb6630","slug":"xbox-announces-3-200-layoffs-four-studios-leaving-umbrella","model":"deepseek-v4-flash","headline":"Xbox Announces 3,200 Layoffs, Four Studios Leaving Umbrella","summary":"Microsoft Gaming CEO Asha Sharma announced a \"reset\" of the business, with 3,200 layoffs planned through the 2027 fiscal year, starting with 1,600 immediate cuts. Four studios-Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs-will leave the Xbox umbrella. Compulsion and Double Fine will become independent with their IPs; Ninja Theory and Undead Labs will go to new owners. Arkane France is in consultation. The company aims to reduce management layers and appoint a COO.","whyItMatters":"The layoffs and studio divestitures signal a major restructuring of Xbox's first-party development as Microsoft shifts toward higher-priority projects and next-generation hardware.","webCardHtml":"\u003cp\u003eMicrosoft Gaming CEO Asha Sharma told employees on Monday that the company is \u0026#34;resetting\u0026#34; its business. The plan includes 3,200 layoffs through the 2027 fiscal year, starting with 1,600 immediate cuts. Four studios will leave the Xbox umbrella in a move that transforms the first-party lineup. The restructuring also includes streamlining management layers and creating a Chief Operating Officer role.\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cstrong\u003eCompulsion Games\u003c/strong\u003e: will return to current management and become independent with its IP\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eDouble Fine Productions\u003c/strong\u003e: will return to current management and become independent with its IP\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eNinja Theory\u003c/strong\u003e: will come under unnamed new ownership\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eUndead Labs\u003c/strong\u003e: will come under unnamed new ownership\u003c/li\u003e\u003c/ul\u003e","blueskyPost":"Xbox is laying off 3,200 people over the next fiscal year, starting with 1,600 now. Four studios-Compulsion, Double Fine, Ninja Theory, Undead Labs-are leaving the Xbox umbrella. The company says it's 'resetting' its business.","twitterPost":"Xbox is laying off 3,200 people over the next fiscal year, starting with 1,600 now. Four studios-Compulsion, Double Fine, Ninja Theory, Undead Labs-are leaving the Xbox umbrella. The company says it's 'resetting' its business.","threadsPost":null,"newsletterBlurb":"Microsoft Gaming CEO Asha Sharma announced a \"reset\" of Xbox's business, including 3,200 layoffs and the departure of four studios. Compulsion Games and Double Fine will become independent, while Ninja Theory and Undead Labs will go to new owners. The restructure includes flatter management and a new COO role.","attributionJson":"[{\"source\":\"Anime News Network\",\"url\":\"https://www.animenewsnetwork.com/news/2026-07-09/xbox-announces-layoffs-amid-reset-of-video-game-division/.239363\",\"title\":\"Xbox Announces Layoffs Amid 'Reset' of Video Game Division\"}]","lintFlagsJson":null,"lintHits":0,"costUsd":0,"inputTokens":3827,"outputTokens":2156,"status":"published","repairAttempts":0,"nextRepairAt":null,"factsAttemptedAt":1783657654,"createdAt":"2026-07-10T04:19:36.000Z","publishedAt":"2026-07-10T04:22:28.000Z","updatedAt":"2026-07-10T04:19:36.000Z"},"cluster":{"id":"c_d783fb969c3900bf49eb6630","canonicalTitle":"News\nXbox Announces Layoffs Amid 'Reset' of Video Game Division","representativeArticleId":"a_e7d3534eb444790bb2b362c8","sourceCount":1,"writtenSourceCount":1,"writeAttempts":0,"isSolo":true,"entitiesJson":"{\"anime_titles\":[],\"manga_titles\":[],\"work_titles\":[],\"studios\":[\"Compulsion Games\",\"Double Fine Productions\",\"Ninja Theory\",\"Undead Labs\"],\"people\":[],\"type\":\"business\",\"domain\":\"games\",\"is_roundup\":false}","contentType":"news","status":"published","firstSeenAt":"2026-07-10T02:44:22.000Z","lastSeenAt":"2026-07-10T02:44:22.000Z","updatedAt":"2026-07-10T04:22:29.000Z"},"attribution":[{"source":"Anime News Network","url":"https://www.animenewsnetwork.com/news/2026-07-09/xbox-announces-layoffs-amid-reset-of-video-game-division/.239363","title":"News\nXbox Announces Layoffs Amid 'Reset' of Video Game Division"}],"entities":{"anime_titles":[],"manga_titles":[],"work_titles":[],"studios":["Compulsion Games","Double Fine Productions","Ninja Theory","Undead Labs"],"people":[],"type":"business","domain":"games","is_roundup":false},"keyFacts":null}