From The Verge · Tom Warren · · 1m 20s
Microsoft lays off 268 Xbox staff, Ninja Theory faces closure
Microsoft continues its massive gaming restructure with new layoffs and studio sales, but a deal to offload Ninja Theory has collapsed.
In brief
Microsoft continues its massive gaming restructure with new layoffs and studio sales, but a deal to offload Ninja Theory has collapsed. Microsoft is dismantling its Xbox studio portfolio through layoffs and forced sales, with Ninja Theory now facing closure after two acquisition deals fell through. Originally reported…
Microsoft cuts 268 Xbox jobs
Microsoft is laying off around 260 Xbox employees today as part of an ongoing reset of its gaming business, following 1,600 layoffs in July.
“The most significant restructure in Xbox history.”
Halo and other studios hit
The 268 eliminated roles span Halo Studios, other first-party studios, and Xbox management layers. These cuts bring the company roughly three-quarters through its previously announced restructuring.
Ninja Theory sale falls through
Two separate deals to sell off Ninja Theory have collapsed. Microsoft is now starting a consultation period to close the studio unless another buyer emerges.
“Two separate agreements for Ninja Theory fell through.”
Four studios being divested
Double Fine and Compulsion Games have already gone independent. Undead Labs is completing its separation on similar terms, while Arkane remains in consultations through year-end.
Activision takes Halo franchise
As part of the restructure, Activision is taking over Halo, Sea of Thieves, and World's Edge, the studio behind Age of Empires.
3,200 roles cut this fiscal year
Today's layoffs are part of 3,200 total roles impacted across Microsoft's 2027 financial year, which ends in June 2027.
The bottom line
Microsoft is dismantling its Xbox studio portfolio through layoffs and forced sales, with Ninja Theory now facing closure after two acquisition deals fell through.
