Xbox cuts 3,200 jobs and parts ways with four game studios

Microsoft has confirmed 3,200 Xbox employees will be made redundant as part of a major restructuring: 1,600 are let go immediately, with another 1,600 to follow within 12 months. Four development studios are leaving the Xbox umbrella, but none will be shut down entirely. Double Fine and Compulsion Games will regain their independence and retain their intellectual property.