Story perspectives

Microsoft Cuts Jobs, Shuts Xbox Studios, Cites $500 M Loss

6/19/2026

Summary

Story summary

Microsoft announced layoffs and Xbox studio closures before June 30, 2026.
An Xbox memo on June 10, 2026 warned of a $500 million revenue loss and a 3 % margin.
The memo said Compulsion Games, Double Fine and Ninja Theory face closure.
After the closures, the 2021 $7.5 billion ZeniMax deal includes only Bethesda Game Studios, MachineGames and Arkane Lyon.
The memo pledged spending on Halo, Fallout and The Elder Scrolls from July 1, 2026 as cannibalization limited sales.

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Story summary

Microsoft announced layoffs and Xbox studio closures before June 30, 2026.
An Xbox memo on June 10, 2026 warned of a $500 million revenue loss and a 3 % margin.
The memo said Compulsion Games, Double Fine and Ninja Theory face closure.
After the closures, the 2021 $7.5 billion ZeniMax deal includes only Bethesda Game Studios, MachineGames and Arkane Lyon.
The memo pledged spending on Halo, Fallout and The Elder Scrolls from July 1, 2026 as cannibalization limited sales.