As Microsoft reduces its total workforce by approximately 9,000 employees, the gaming division is also facing significant impact.

According to reports from Windows Central and Bloomberg on the 3rd, several Xbox studios are facing closures and layoffs. While the exact scale remains unconfirmed, it is reported that most studios, excluding the Xbox hardware division, are affected.

Personnel from Activision studios co-developing the 'Call of Duty' series, including Raven Software and Sledgehammer Games, have been laid off. Additionally, approximately 10% of the staff at Activision Blizzard’s 'King' studio have been cut.

The marketing team at ZeniMax Media, Bethesda's parent company, is also undergoing reductions. Development on an unannounced project at ZeniMax Online Studios has been halted. Furthermore, Rare's online game 'Everwild', first announced in 2019, has been cancelled, and Turn 10, the developer of 'Forza Motorsport', is reducing its workforce by approximately 50%.

Reports indicate that the Xbox first-party studio The Initiative has been shuttered due to these layoffs. Consequently, the reboot project for the classic FPS 'Perfect Dark', first unveiled at The Game Awards in 2020, has also been cancelled.

Meanwhile, the Xbox hardware division, which recently garnered attention for its partnership with AMD, and Microsoft Gaming CEO Phil Spencer appear to have been spared from these layoffs. In a letter to employees, CEO Phil Spencer stated, "By protecting the growing parts of our business and focusing on areas with the greatest potential, we will be able to deliver exceptional games and experiences to our players," adding, "We will move forward with gratitude and respect for everyone who has built our culture, products, and community."