Xbox confirms plans to cut 5 studios and thousands of jobs

Xbox has confirmed a major restructuring plan that involves cutting 3,200 jobs and divesting five subsidiary studios, including Double Fine, Ninja Theory, and Compulsion. While these studios will either leave or be sold, no official closures have been announced. This strategic move may increase market competition, as the spun-off studios could potentially emerge as independent entities leveraging their strong IP portfolios to compete within the gaming industry following these extensive organizational changes.