Xbox cutting 3,200 jobs and parting ways with Double Fine, Compulsion, Ninja Theory, and Undead Labs

Microsoft announced the largest Xbox restructure in company history, cutting 3,200 jobs with 1,600 layoffs effective immediately. Compulsion Games and Double Fine return to independence with full IP ownership; Ninja Theory and Undead Labs join new ownership to complete Senua and State of Decay 3. CEO Asha Sharma cited failed Game Pass and multiplatform bets, weakened core business, and a severe hardware crisis driven by AI data center competition.

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