Microsoft Sells Five Studios, Lays Off 3,200 at Xbox

Microsoft is laying off 3,200 employees in its Xbox division, a move described internally as the 'most significant restructure in Xbox history.' The company is spinning off Compulsion Games and Double Fine as independent studios, while selling Ninja Theory and Undead Labs to new ownership.

Arkane Lyon, maker of the upcoming Blade game, is also under strategic review.

The layoffs represent over 30 percent of the broader 4,800 job cuts at Microsoft, which are focused on its commercial sales and gaming businesses.