Xbox’s ongoing gaming division “reset” is reportedly expected to result in fewer than the approximately 3,200 job cuts announced for Microsoft’s 2027 financial year. Restructuring, staff transfers and studio divestitures have reduced the number of redundancies, although further changes and consultations remain underway.

Microsoft has moved some developers under Activision and Bethesda, while Double Fine and Compulsion have become independent and Undead Labs is reportedly changing publisher. Xbox says it is roughly three-quarters through the restructuring, but Ninja Theory may face closure after a proposed agreement fell through; discussions about Arkane’s future are also continuing.