‘It’s Going To Be Pretty Brutal’ - Jason Schreier Reveals More On Upcoming Xbox Layoffs
Microsoft is preparing for significant layoffs at Xbox that will take effect at the end of the company’s fiscal year on June 30th, according to Bloomberg reporter Jason Schreier. The layoffs are expected to impact multiple studios, including Compulsion Games (developer of South of Midnight), Double Fine, and Ninja Theory—all of which have previously developed titles for PlayStation 5.
However, the situation extends beyond these three high-profile studios. Schreier reports that additional Xbox studios remain in trouble, with the organization bracing for what he described as a “bloodbath” over the coming two weeks. The layoffs are expected to be significant across the entire Xbox organization.
Currently, negotiations are underway with affected studios regarding their futures. Potential outcomes include spinning off studios as independent entities or facilitating acquisitions by other publishers and investors. These discussions suggest Microsoft is exploring various paths to mitigate the impact while restructuring its gaming division.