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 will return to management and transition to independent studios with their IP, catalog, and runway for their next games. Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.
This is all MSFT spin.
The studios mentioned don’t all have enough funding to continue to be operational at their current burn rates. Those studios will be doing their own layoffs or may not survive at all.
Those studios account for under 30% of the 1600 jobs that MSFT is removing from their payroll today. As the day goes on there will be news that breaks of other studios under their banner that have layoffs which contribute to the total mentioned. It’s likely that their individual stories will be lost under this initial announcement.
She also mentioned that the big studio they currently owned will have their own cut too.