The Verge
Microsoft is selling off four Xbox studios as part of significant gaming cuts
Monday, July 6, 2026
Microsoft announced layoffs of 4,800 employees, with more than 30 percent of reductions occurring in the Xbox division. Four game studios will be spun off to operate independently from Microsoft rather than remain part of the company. The cuts affect multiple areas within Xbox operations.
Original reporting: https://www.theverge.com/news/961546/xbox-layoffs-studio-sales-2026
