Xbox cuts 3,200 jobs as Microsoft restructures its gaming division

Microsoft is cutting 3,200 jobs across its gaming division as Xbox continues to struggle with low margins, weak console sales and disappointing Game Pass growth. CEO Asha Sharma described the business as unhealthy, noting that Xbox loses 64 cents for every dollar invested. Several studios, including Double Fine and Compulsion Games, will be spun off, while major acquisitions like Activision Blizzard, Bethesda and Mojang remain protected. Microsoft is pushing ahead with Project Helix, a next generation hybrid console designed to run both Xbox and PC games, aiming to compete more directly with Valve’s Steam ecosystem. The company has set a deadline of June 2027 to show measurable profitability improvements or face even more drastic restructuring.

Read the full story on PCWorld →