Amid Concern Over Xbox Studio ‘Bloodbath,’ New Report Says Developers Are Being ‘Punished Today for Following Orders’
Microsoft’s Xbox division is undergoing a significant restructuring that will result in substantial layoffs and studio closures, according to reports following a warning from newly-appointed Xbox CEO Asha Sharma. Sharma cited an unsustainable profit margin as the driver behind the restructuring, prompting concerns of a “bloodbath” of job losses across the gaming division.
Several major Xbox studios have reportedly been marked for shutdown, including Compulsion Games (developer of South of Midnight), Double Fine (known for Kiln), and Ninja Theory (creators of Hellblade). While these reports have circulated widely, official confirmation and precise details remain unclear as Microsoft appears to be finalizing its plans.
The restructuring is believed to be timed with Microsoft’s fiscal year end on June 30, with ongoing discussions between studio leadership and company management. Reports suggest that developers view themselves as being “punished today for following orders,” reflecting frustration among staff who face job losses despite having operated under Microsoft’s strategic direction.