The industry has been bracing for large-scale Xbox layoffs in the wake of a new administration running the brand. Today, those layoffs have arrived,

Xbox CEO Asha Sharma calls it the most significant restructuring in Xbox history: 3,200 job cuts, four studio spinoffs, a new COO, and a flattened management structure — all aimed at turning around a division she says has been losing 64 cents on every dollar invested in its studios.

Xbox will cut 3,200 roles, while Ninja Theory, Undead Labs, Compulsion Games, and Double Fine Productions are leaving the Xbox Games Studio banner.

Obsidian Entertainment was said to be on the potential chopping block in Xbox's incoming layoffs, but those rumors may be wrong and Xbox may keep Obsidian.

Times couldn’t possibly be tougher for the Xbox brand. Looming studio closures and hardware price hikes have threatened to chip away any momentum or good will Microsoft managed to gain in the Xbox Series X era.

Fallout is one of the big franchises Xbox likely wants to focus on - or at the very least, should be - so closing the one studio it has (besides BGS) with experience developing Fallout games would be pretty bloody stupid.

We're not reducing our overall investment in games,' Xbox says. 'We expect to invest about the same in content as we did last year.'.

GameSpot may receive revenue from affiliate and advertising partnerships for sharing this content and from purchases through links. As a massive layoff plan looms over Xbox’s various subsidiaries, new reports suggest that the iconic RPG studio Obsidian ...