Games are over: Microsoft is launching a large-scale purge of its gaming divisions (photo)
It seems the time has come at Microsoft's offices when "gaming" has become a dirty word in corporate reports. The new head of Xbox, Asha Sharma, who replaced the legendary Phil Spencer, has officially declared the division's current business model "unhealthy" and has embarked on radical measures. The company plans to cut approximately 4,800 jobs across the organization, with the lion's share of the "optimization"—up to 3,200 jobs—coming from the gaming division by the end of fiscal year 2027.
While fans wonder what will happen to their favorite franchises, management is shedding excess weight: Double Fine and Compulsion Games are going freelance, while Ninja Theory and Undead Labs are preparing to be sold to new owners. Arkane appears to be in a turbulent period, discussing its future, while giants like Blizzard, Bethesda, and Activision are also undergoing a purge. The irony is that, after buying up studios in bulk for billions of dollars, Microsoft ultimately decided it was easier to sell them off than to try to squeeze a profit out of them.
Nevertheless, the company hastened to reassure those who had already panicked: all officially announced games remain in development. It appears Microsoft has decided to shift its "do it all" strategy to "keep only what makes money," attempting to survive in a climate where console development is becoming more expensive and competition with Sony and Nintendo is becoming increasingly fierce. One can only hope that this "reset" is truly a strategic maneuver, and not the beginning of the end for the once-ambitious gaming giant. 
