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Industry · Layoffs & studio closures · published 2026-09-25T00:00:00+00:00 · via GamesIndustry.biz

Xbox's restructuring continues without a clear finish line

Image via GamesIndustry.biz
Image via GamesIndustry.biz

Asha Sharma, Xbox's CEO, described her second hundred days as a reset for the business after her first hundred days ended. The reorganization has already brought hundreds of job losses and the closure or divestment of multiple studios. Xbox still intends further cuts as it works toward a previously announced target of 3,200 reductions, while Ninja Theory faces likely closure and Arkane's future remains unresolved.

Expanded Detail

Asha Sharma, Xbox CEO, framed her second hundred days as a business reset after her first hundred. She pointed to weak accountability margin, falling revenue, and hardware component pressures. That period ended more than a week ago.

Since then, hundreds of roles have gone, with studios closed or sold. This week brought 268 more cuts after roughly 1,600 earlier losses. Ninja Theory has no buyer and may close; Arkane's status is unresolved. Xbox still aims for 3,200 total reductions. Obsidian moved under Bethesda, while Activision now oversees Halo and Rare.

Context

The continuing Xbox cuts could deepen uncertainty for employees, contractors, and families tied to affected studios, while local communities may feel reduced spending and fewer creative jobs. Players might see fewer titles or changed franchise stewardship as studios close or shift. Across the wider game industry, repeated layoffs may weaken trust in large publishers and make talent more cautious about long-term studio roles. The full social impact remains unclear while the restructuring lacks a defined endpoint.

Expanded detail and Context are AI-generated analysis; the linked article remains the authoritative source.
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