The incredible shrinking Xbox: Five studios, 3,200 employees let go

Ars Technica
By Kyle OrlandJul 6, 2026, 12:01 pm40 pts
Last month, Xbox executives laid out some "hard truths" about Microsoft's struggling gaming division that they said would require a difficult "Xbox reset." This morning, Microsoft revealed the brutal shape of that "reset," announcing plans for 3,200 layoffs and the divestment of five smaller studios that the…

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