Xbox Studio Shakeup: Spin-Offs and Layoffs Rumored as Microsoft Reshapes its Gaming Arm

Bloomberg reporter Jason Schreier says more Xbox Studios beyond Ninja Theory, Double Fine, and Compulsion are in trouble, with talks under way to spin off studios or sell them to other publishers. A broader “bloodbath” of layoffs is anticipated over the next two weeks as Microsoft navigates Activision Blizzard integration and the pressure to grow Game Pass, with potential ripple effects across PlayStation as studios renegotiate futures before the June 30 fiscal year-end.