Episode Details

Microsoft is pulling the plug on a major Xbox overhaul, cutting nearly 5,000 jobs—with over 30% hitting Xbox directly—and planning to slash another 20% by July 2027. Four studios, including Double Fine and Ninja Theory, are spinning off or being sold, while Bethesda, Mojang, and King now report straight to Xbox leadership. The move signals a pivot away from acquisitions toward core franchises, with Arkane’s delayed Blade project under review. But don’t panic: no announced games are off the table—Microsoft’s goal? Streamline, refocus, and return to growth.

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