Azernews.Az

by Alimat Aliyeva

Microsoft has begun a major restructuring of its Xbox gaming division, marking the biggest transformation in the brand’s history. As part of the changes, the company plans to reduce its workforce by approximately 3,200 employees, which represents around 20% of Xbox’s staff, AzerNEWS reports.

According to Xbox CEO Asha Sharma, the restructuring is aimed at improving the division’s financial performance. Microsoft plans to concentrate its resources on its most important game franchises, optimize internal processes, and make the gaming business more efficient.

As part of the transition, studios such as Compulsion Games and Double Fine Productions are expected to separate from Xbox and continue operating independently under the leadership of their founders. The teams will reportedly keep the rights to their intellectual property and will be able to finish projects that are already in development.

Microsoft is also considering the sale of Ninja Theory and Undead Labs. The move would allow both studios to continue working on their upcoming projects, including the next chapters of the Senua and State of Decay franchises. The identities of potential buyers have not been revealed.

Meanwhile, Arkane Studios’ management has started internal discussions about the studio’s future direction. The restructuring will also affect other parts of Microsoft: the company is expected to eliminate around 6,500 positions across its global workforce, representing approximately 3% of all employees.

The changes come after Microsoft’s massive expansion of its gaming business, including the acquisition of Activision Blizzard in a deal worth nearly $69 billion. While the acquisition significantly increased Xbox’s portfolio of studios and popular franchises, the company is now focusing on reducing costs and ensuring long-term profitability in an increasingly competitive gaming market.