As a new dawn breaks on news that Xbox is cutting 3,200 jobs and releasing four development teams from its Xbox Game Studios umbrella, three of those studios have issued statements about their departure from Xbox.

Xbox CEO Asha Sharma confirms 4 studios are leaving Microsoft, with a fifth, Arkane Studios, fate uncertain amid mass layoffs.

Last month, Xbox executives laid out some “hard truths” about Microsoft’s struggling gaming division that they said would require a difficult “Xbox reset.” This morning, Microsoft revealed the brutal shape of that “reset,

Obsidian Entertainment was said to be on the potential chopping block in Xbox's incoming layoffs, but those rumors may be wrong and Xbox may keep Obsidian.

State of Decay 3 developer Undead Labs is in danger of being shut down or sold off by Xbox. The gaming giant is preparing significant layoffs.

Fallout is one of the big franchises Xbox likely wants to focus on - or at the very least, should be - so closing the one studio it has (besides BGS) with experience developing Fallout games would be pretty bloody stupid.

We're not reducing our overall investment in games,' Xbox says. 'We expect to invest about the same in content as we did last year.'.

Times couldn’t possibly be tougher for the Xbox brand. Looming studio closures and hardware price hikes have threatened to chip away any momentum or good will Microsoft managed to gain in the Xbox Series X era.