Xbox Moves On From 4 Studios and Layoffs Off Thousands of Others

In the bloodshedding many were expecting following the July 4th weekend, and the change of Microsoft's fiscal new year, Xbox has revealed their many many changes coming to the studios and teams that make up their console business. Over 1600 employees were impacted yesterday, and another 1600 will be throughout the rest of 2026-2027's fiscal year for Microsoft.Xbox Sales and Releases The headliner for many is going to be the four confirmed studios that Microsoft has found a purchaser for or is allowing to leave, with their IP intact. These four studios made up 'only' 350 employees of those leaving Microsoft today.

Jul 7, 2026 - 18:35
 2
Xbox Moves On From 4 Studios and Layoffs Off Thousands of Others
In the bloodshedding many were expecting following the July 4th weekend, and the change of Microsoft's fiscal new year, Xbox has revealed their many many changes coming to the studios and teams that make up their console business. Over 1600 employees were impacted yesterday, and another 1600 will be throughout the rest of 2026-2027's fiscal year for Microsoft.

Xbox Sales and Releases
The headliner for many is going to be the four confirmed studios that Microsoft has found a purchaser for or is allowing to leave, with their IP intact. These four studios made up 'only' 350 employees of those leaving Microsoft today.

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