Escalation: Microsoft confirms 3,200 layoffs
On July 7, Microsoft said it will eliminate 3,200 jobs as part of a sweeping restructuring of its Xbox and gaming operations.
Arkane Studios founder Raphael Colantonio publicly asked Xbox CEO Phil Spencer "how much" it would cost to buy the studio, adding "I'm asking for a friend"; Arkane is best known for Dishonored.
Daily Express reports Microsoft chiefs denied the layoffs were driven by AI, describing the changes as a "reset" while confirming 3,200 roles will be cut.
Polygon says Xbox also cut four other studios in the overhaul, while Kotaku reports the future of Arkane Lyon remains unclear as leadership weighs options for the team.
Amid the rework, Daily Express adds that Xbox reaffirmed its commitment to major Bethesda franchises, including The Elder Scrolls and Fallout.
Synthesized from 12 sources
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AI-synthesized from multiple reported sources
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