{"id":44173,"date":"2026-09-22T09:53:30","date_gmt":"2026-09-22T09:53:30","guid":{"rendered":"https:\/\/gaitgames.com\/?p=44173"},"modified":"2026-09-22T09:53:30","modified_gmt":"2026-09-22T09:53:30","slug":"xbox-plans-additional-layoffs-and-consolidation-of-game-studios-in-second-wave-of-job-cuts-this-year","status":"publish","type":"post","link":"https:\/\/gaitgames.com\/?p=44173","title":{"rendered":"Xbox Plans Additional Layoffs and Consolidation of Game Studios in Second Wave of Job Cuts This Year"},"content":{"rendered":"
<\/a><\/div>\n

### Microsoft\u2019s Xbox Division Faces Another Round of Layoffs and Studio Consolidation<\/p>\n

After previously laying off approximately 1,600 employees and disbanding several studios in July, Microsoft-owned Xbox is reportedly preparing for another significant round of job cuts and internal restructuring. Reports from *The Information* suggest that \u201chundreds\u201d of staff will be let go this week as the company seeks to consolidate its game studios.<\/p>\n

#### Reports of Consolidation<\/p>\n

The exact nature of this consolidation is yet to be detailed, but sources indicate potential mergers and shifts within Xbox’s publishing arms, which include Xbox Game Studios, Bethesda, Activision, and Blizzard. Notably, Bloomberg journalist Jason Schreier has hinted at impending layoffs specifically at Blizzard, suggesting that changes within the studio are imminent.<\/p>\n

#### Previous Layoffs and Studio Departures<\/p>\n

In July 2023, Xbox CEO Asha Sharma indicated plans for a total of 3,200 layoffs across the financial year, with the initial wave accounting for half that number. This round of cuts led to Xbox parting ways with five studios: <\/p>\n

– **Compulsion Games**, developers of *South of Midnight*,
\n– **Double Fine**, known for *Psychonauts*,
\n– **Undead Labs**, creators of *State of Decay*,
\n– **Ninja Theory**, developers of *Hellblade*,
\n– **Arkane**, which produced the *Dishonored* series, is still in a state of uncertainty regarding its future.<\/p>\n

Additionally, other studios within the Xbox umbrella, like **Bethesda**, **Id Software**, **ZeniMax Online**, and **Obsidian**, have also faced significant layoffs, which have raised concerns about the impact on the quality of their game releases.<\/p>\n

#### Strategic Shift to Established Series<\/p>\n

The recent layoffs appear to reflect a strategic shift within Xbox toward focusing on its more established franchises. Following the departure of significant staff, efforts have been redirected towards high-profile titles, with indications that a new *Fallout* game is in the pipeline at Obsidian.<\/p>\n

#### Implications for the Gaming Industry<\/p>\n

As developments unfold, the gaming industry watches closely. This year’s layoffs and restructuring reflect broader challenges within the gaming sector, where the sustainability of studios and employee welfare are becoming increasingly scrutinized. The ongoing layoffs have stirred solidarity among developers affected by these changes, as they navigate the uncertainties of employment within these high-stakes environments.<\/p>\n

#### Ongoing Controversies<\/p>\n

Compounding the situation, Microsoft, Xbox\u2019s parent company, is facing a boycott from the BDS movement due to alleged ties to the Israeli military, which adds an additional layer to the company’s current challenges.<\/p>\n

In conclusion, as Microsoft\u2019s Xbox division prepares for another wave of internal adjustments, the impact of these layoffs on the future of gaming projects and employee morale remains to be seen. Developers and stakeholders alike are likely to feel the repercussions of these significant organizational shifts for years to come.<\/p>\n","protected":false},"excerpt":{"rendered":"

<\/a><\/div>\n

After laying off around 1600 people<\/a> and parting ways with a number of studios back in July, Microsoft-owned Xbox are reportedly set for another round of job cuts and internal upheaval this week.<\/p>\n

Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":44174,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-44173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/posts\/44173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44173"}],"version-history":[{"count":0,"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/posts\/44173\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/media\/44174"}],"wp:attachment":[{"href":"https:\/\/gaitgames.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}