Xbox spins off four studios, including Senua-maker Ninja Theory, as mass layoffs begin


Microsoft’s Xbox division has kick-started a big reset today, a move it has been hinting at for weeks. The company has announced layoffs covering approximately 3,200 roles throughout 2027, of which nearly half of the roles are being terminated starting today. Additionally, the gaming arm is letting go of four studios, including Ninja Theory, which developed the smash hit Senua series of games. Notably, the company assures that none of the first-party games that have already been announced will be affected or cancelled.

What’s happening?

This is an important email I sent today to all employees at XBOX:

Team,

We are beginning the most significant restructure in XBOX history. After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include…

— ASHA (@asha_shar) July 6, 2026

Xbox is entering a year-long restructuring phase, something that has been making the rounds of the rumor mill for a while now. The company argues that its operating margin is 3-10x lower than rival platforms (read: PlayStation and Nintendo). And to make matters worse, the install base was lower, and the cost of its ninth-generation platform was higher than ever. The company also notes that Xbox Game Pass and its multi-platform game strategy didn’t yield the kind of results they had hoped for.

Our business today is not healthy.

“I know this is painful. These changes will directly affect people who have poured their creativity into building XBOX. Many joined us through acquisitions, while others were recruited here, or sought us out because they loved this industry and loved XBOX. Today’s decisions do not reflect their talent or dedication,” Xbox chief Asha Sharma wrote in an official blog post. This is the second major lay-off following restructuring that happened back in 2024.

What about the studios?

The biggest shift that comes as part of the reset is the studio culling. Compulsion Games (South of Midnight, We Happy Few, and Contrast) and Double Fine Productions (Psychonauts 2, Kiln, Keeper, and Broken Age) are going independent, which means they are officially moving out of the Xbox Games Studio banner. These studios will also be moving out with their IP, catalog, and runway intact.

More importantly, Ninja Theory and Undead Labs are also finding new owners. Ninja Theory developed some of the most recognizable Xbox games of the past few years, including Senua, Senua’s Saga : Hellblade II, Hellblade: Senua’s Sacrifice, and Bleeding Edge, to name a few. Undead Labs, which developed the State of Decay series, has also been shown the exit door.



Source link

Leave a Reply

Subscribe to Our Newsletter

Get our latest articles delivered straight to your inbox. No spam, we promise.

Recent Reviews


Sixteen years ago, The Social Network turned the origin story of Facebook into one of the most acclaimed films of the century. Now, Aaron Sorkin is back, and this time he is writing and directing. Sony Pictures dropped the first full trailer for The Social Reckoning today, and it is exactly as intense as you would hope.

This is technically not a direct sequel but a companion piece, and it is focused on what happened after Facebook grew from a dorm room idea into a platform that reshaped the world, and not always for the better.

What is The Social Reckoning actually about?

The film centers on Frances Haugen, a young Facebook engineer who, in 2021, leaked a massive trove of internal company documents to the Wall Street Journal, exposing how the platform knowingly amplified harm to teenagers and allowed misinformation to spread on a global scale.

That reporting, known as The Facebook Files, blew the lid off how Facebook handled its internal research. The tagline “Every revolution begins with a reckoning” frames the entire film as something bigger than a corporate scandal story.

Mikey Madison, who won the Best Actress Oscar for Anora, plays Haugen. Jeremy Allen White plays WSJ reporter Jeff Horwitz, who helped Haugen bring those secrets to light. The supporting cast includes Wunmi Mosaku, Betty Gilpin, Billy Magnussen, and Bill Burr.

Jeremy Strong as Mark Zuckerberg is the casting decision of the year

Jesse Eisenberg, who played Zuckerberg in the original and earned an Oscar nomination for it, declined to return for The Social Reckoning. Sorkin went with Jeremy Strong, the Succession lead, who has been phenomenal at playing a complicated man on the edge. The trailer shows him absolutely nailing Zuckerberg’s flat delivery and unsettling stillness.

When Strong was asked whether he had spoken to Eisenberg about the role, his answer was blunt. It had nothing to do with what he was going to do. That confidence is all over the trailer. Strong plays Zuckerberg as a man who has fully grown into his own power, dead-eyed and precise, describing himself with a straight face as a “professional defendant” while being prepped for congressional testimony.

Strong says the script of this movie is one of the greatest he has ever read, saying it touches the third rail of everything happening in the world right now. The Social Reckoning opens in theaters on October 9, 2026.



Source link