- Microsoft announces 4,800 job cuts, about 2.1% of its workforce, with significant layoffs affecting Xbox, including over 1,600 immediate roles axed.
- Xbox CEO Asha Sharma describes this as the 'most significant restructure in Xbox history', involving spinning off four game development studios: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Lab.
- Microsoft executives cite the need to adapt to fast-changing industry and customer needs, with Amy Coleman noting AI is changing work processes, though not replacing lost roles with AI.
- The restructuring is part of a broader reset for Xbox, aimed at focusing on major IP and audiences, with Mojang and King now reporting directly to Sharma.
- Industry analysts highlight challenges for Xbox in defining its role across console, PC, cloud, and subscription platforms amid ongoing gaming industry layoffs and rising hardware costs.