As anticipated several weeks ago, Xbox is preparing a fresh wave of layoffs, studio closures, and project cancellations. The coming hours are expected to reaffirm what many see as the struggling trajectory of Microsoft’s current console generation.

A report from one of the most trusted sources in the gaming industry indicates that Microsoft’s gaming brand has already begun laying the administrative, legal, and formal groundwork necessary for personnel cuts and the dissolution of development teams.

XBOX Game Pass acuerdos terceros

Layoffs, Studio Closures, and Cancellations at XBOX

In a post on the social platform Bluesky, Bloomberg journalist Jason Schreier revealed that Xbox is actively coordinating mass layoffs, studio closures, and project cancellations at this very moment.

The official announcement is expected imminently, with the large-scale reductions reportedly set to take effect at the end of the current fiscal year, which concludes for Microsoft on June 30.

Schreier also noted that some contract terminations and provider cutbacks have already taken place, with initial staff reductions already affecting Assembly, the company’s public relations agency.

Jason Schreier

Which XBOX Studios Will Be Shut Down?

While speculation continues to swirl regarding the fate of various Xbox Game Studios teams, multiple reports converge on the likelihood that at least four studios could be shut down in the coming days.

According to a report from GamesBeat, the anticipated layoffs are expected to impact Compulsion Games, Ninja Theory, Double Fine, and Undead Labs.

Sources suggest that all four studios have been actively seeking external publishers or potential buyers to secure their future operations. However, if no interested parties emerge, insiders warn that Xbox will proceed with their closure, marking the end of their respective histories.

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