Xbox cuts 3,200 jobs and refocuses ZeniMax on Fallout, Elder Scrolls and key franchises

Microsoft and Xbox have announced approximately 3,200 job cuts before the end of financial year 2027, with several studios being sold off or made independent. ZeniMax Media and Bethesda Softworks will also face cuts, though no studios are closing. Xbox is planning a significant overhaul focused on major franchises including Fallout, The Elder Scrolls and Quake.