South of Midnight
GameBy Compulsion Games
Documents about South of Midnight
Jason Schreier19 min
Xbox To Cut 3,200 Jobs, Get Rid Of Five Studios
Microsoft has initiated a major restructuring of its Xbox division, characterized by the elimination of 3,200 positions and the divestiture of five studios.
- Microsoft is cutting 3,200 jobs at Xbox, representing approximately 20% of its 16,000-person workforce, with 1,600 layoffs occurring immediately and the remainder scheduled over the next several months.
- Xbox is divesting from five studios: Ninja Theory and Undead Labs are being sold, while Double Fine and Compulsion Games will spin off into independent, management-owned entities with rights to their own IP.
- Arkane is entering a consultation process regarding its future due to French labor laws, as part of a broader strategy to move away from the 'limited integration' model of studio management.
Jason SchreierJul 2026
The Game Business12 min
Xbox plans 3,200 job cuts, and will drop five acclaimed studios
Xbox is undergoing a significant corporate restructuring, characterized by approximately 3,200 job cuts—representing roughly 15% of its workforce—and the divestment of five critically acclaimed studios.
- Xbox is cutting 3,200 jobs, representing approximately 15% of its total workforce, as part of a major corporate restructuring.
- The company is divesting five studios: Double Fine and Compulsion Games are moving to independent management, while Ninja Theory, Undead Labs, and Arkane Lyon are seeking new ownership.
- The restructuring shifts the company from a decentralized studio model to a centralized structure that prioritizes major franchises like Halo, Gears of War, and Fallout over smaller, independent-style projects.
The Game BusinessJul 2026
Jason Schreier30 min
How Things Got So Bad At Xbox
Xbox is currently navigating a period of profound organizational instability characterized by significant layoffs, studio closures, and the cancellation of major projects.
- Xbox is undergoing a major organizational overhaul under new CEO Asha Sharma, involving significant layoffs and potential studio closures as the company pivots to prioritize higher profit margins.
- The $68.7 billion acquisition of Activision Blizzard, which took 18 months to close, significantly increased Xbox's operational costs by adding thousands of employees during a period of industry-wide market cooling.
- Xbox's financial strategy has been complicated by the conflicting goals of its hardware, software, and services divisions, leading to internal debates over whether Game Pass cannibalizes full-game sales.
Jason SchreierJun 2026
Companies behind it
As the documents state it.