Microsoft will announce even more restructuring at Xbox today, with layoffs and even the possibility of game studio mergers and consolidations, sources tell both The Verge and The Information.
There will be more dour news from Xbox today as Microsoft is reportedly planning to enact the next phase of its restructuring plan. Reports say that this will take shape in the form of mass layoffs that affect hundreds of people, as well as a business re-orientation that could see studios and teams combined/consolidated into more cohesive and synergistic units.
Popular Now: 4GB and 6GB GDDR7 chips could enable 192GB workstation GPUs by 2027-28Insider NateTheHate, who has proven to be accurate in the past, says that Halo could even be moved under Activision Blizzard's purview. Years ago, Sony wrote in court testimony that Xbox would become a "one stop shop for shooters" if the ABK merger went through. To illustrate the point, I made an infographic (see below).
The info, which has yet to be verified by Microsoft, is supported by the plans that Xbox CEO Asha Sharma has already revealed. Months ago, Sharma revealed that 3,200 job cuts are planned at Xbox, and the layoffs would be spaced across FY26 (which has passed) and FY27 (Microsoft's current fiscal year). This wave of layoffs coincides with the FY27 period and would represent the latter half of the plan.
It's unknown which studios could be combined with one another, and how exactly that will look. Xbox currently has multiple dev studios and teams that overlap in their respective genres; Bethesda is known for delivering RPGs, but also Doom, and Obsidian also makes RPGs with other groups like Halo Studios working on FPS.
The exact structure is unclear, but it's possible that Xbox's new business strategy could mirror Ubisoft's newer Creative Houses structure, which would see multiple studios being assigned to multiple franchises.
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It's also possible that Xbox teams that are separated into these groups could get outside funding from other publishers, studios, and media organizations, similar to Tencent's involvement with Ubisoft's newly-formed Vantage Studios creative house.
