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Microsoft’s Layoffs and the Uncertain Future of Ninja Theory

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Microsoft is laying off 268 Xbox staffers and Ninja Theory may close

Microsoft Xbox Layoffs: 260 Employees Affected

Microsoft has announced the layoff of approximately 260 Xbox employees as part of a strategic restructuring of its gaming division. This move comes after a significant restructure in July, which impacted 1,600 Xbox employees and was described by Xbox CEO Asha Sharma as the most significant in Xbox history. These layoffs are part of a larger plan that will see a total of 3,200 roles affected by the end of Microsoft’s 2027 financial year in June 2027.

Xbox Studios Impacted by Layoffs

Matt Booty, Xbox chief content officer, stated in a memo that 268 roles are being eliminated across Halo Studios, other first-party studios, and the XGS management and central functions layer. With these actions, Microsoft has progressed three-quarters of the way through the previously announced restructuring. Booty expressed gratitude for the work done by colleagues and acknowledged the difficulty of the situation for those leaving and their teams.

Changes in Xbox Studios Ownership

As part of the restructuring, Microsoft has sold off four Xbox studios. While Double Fine and Compulsion Games have become independent, the deal to sell Ninja Theory fell through. Microsoft is now considering closing the studio unless another buyer is found. Similarly, Undead Labs is in the process of being sold off, following agreements similar to those for Compulsion and Double Fine. Consultations are ongoing regarding the future of Arkane and the Blade game, in compliance with French labor laws.

Future of Xbox and Activision Partnership

In a larger reorganization, Activision will take on the Halo franchise, Sea of Thieves, and World’s Edge, the studio behind Age of Empires. This move marks a significant shift in the Xbox landscape. For more information on the latest developments in Xbox, stay tuned for updates.

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