Microsoft's gaming unit announced a major restructuring today that includes divesting four development studios whilst implementing widespread workforce reductions across multiple divisions. The scale of layoffs varies by business unit, with no unified reduction approach across the company's gaming portfolio.

Bethesda Game Studios and parent company ZeniMax Media have reportedly absorbed particularly significant staff cuts according to union representatives and industry sources. However, the reorganisation will preserve active development on established franchises including Fallout, Elder Scrolls, Doom, Wolfenstein, and Quake, with studios such as id Software and ZeniMax Online Studios remaining operational despite the personnel reductions.