XBOX CEO Asha Sharma has finally laid out the painful plan for XBOX’s reset.
In her latest newsletter, which she shared to the public, Asha said this:
After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management.
Compulsion Games and Double Fine Productions have bought themselves out, including their own IP and upcoming games. Ninja Theory and Undead Labs have new owners who will complete funding for Senua and State of Decay 3, respectively.
Arkane Studios is under a different situation. It is starting consultation, in accordance with France law, and this is usually a prelude to bankruptcy or other procedures. Arkane could stay under Bethesda but after a huge round of layoffs.
Layoffs and reorganization will still happen in XBOX’s other divisions, but Asha is able to make this claim at the end of the day:
None of our first party publicly announced games or projects are being cancelled as part of these reductions.