Today, Xbox announced what it calls "the most significant restructure in Xbox history": Part of a larger downsizing at Microsoft that's putting 4,800 employees out of work, the reorganization will eliminate 1,600 Xbox roles today, with the division aiming to reduce its headcount by 3,200 throughout the 2027 financial year.
Alongside the layoffs, four game development studios are leaving Microsoft ownership for new management, including South of Midnight and We Happy Few developer Compulsion Games. Previously reported as facing imminent closure, the award-winning Montreal-based developer is instead returning to independent studio status and maintaining ownership of its IP and games catalog.
