This week saw sweeping layoffs and Xbox divesting itself of five studios, shaking up the company once again. Xbox went on a massive buying spree throughout the 2010s and 2020s, but following the costly acquisition of Activision Blizzard and making big bets on Xbox Game Pass that haven’t seemed to pay off–as well as rising interest rates and inflation–this blank check policy has had a major impact on Xbox.

Xbox announced a significant overhaul of its business Monday, which will see the company cutting 20% of its organization over the next 12 months. As part of that change, Xbox is parting ways with four studios,

Xbox is betting its future on fewer employees, fewer bets and greater emphasis on its most established gaming brands.

Microsoft laid off 1,600 employees across its Xbox division this week, including hundreds of union video game workers represented by Communications Workers of America. The workforce reduction comes in addition to what new CEO Asha Sharma calls the "most significant restructure" in the Microsoft division's history.

The layoffs were part of wider cuts at Microsoft, as the company prioritizes spending on artificial intelligence.

Xbox owns a lot of studios across the globe; here's which ones are still active and which are not as of July 2026

New Xbox console revealed - everything we know so far

It's time to kick-off the Xbox Summer Sale 2026! This year's promotion has begun with a few days of exclusivity for Game Pass members, before the sale is blown open to all Xbox players in the near future - seemingly on July 15th.