
We've been waiting ages for Xbox to announce what's happening with the layoff situation, and it's now been confirmed that 3,200 roles are being eliminated throughout fiscal year 27, with 1,600 of those taking place today.
In addition, Compulsion Games (We Happy Few, South of Midnight) and Double Fine Productions (Psychonauts 2, Kiln) are transitioning to independent studios, while Ninja Theory (Hellblade) and Undead Labs (State of Decay 3) are being sold off. Arkane Studios (Marvel's Blade) is also reviewing strategic options.
"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."
In her statement, Xbox boss Asha Sharma acknowledged the "painful" nature of the news, but also insisted that Xbox isn't in a healthy place, and now needs to "reset our content portfolio", "reset our platform" and "reset how we operate".