Microsoft has finally announced its Xbox business 'reset', which includes laying off 3200 people and parting ways with five prominent studios. Xbox CEO Asha Sharma has announced that the company will lay off 3200 people over the next financial year, starting with around 1600 redundancies today.

Studio Futures

Microsoft is parting ways with five studios - Double Fine, Undead Labs, Ninja Theory, Compulsion, and Arkane. Compulsion and Double Fine will become independent studios again, while Ninja Theory and Undead Labs have found new owners. Arkane's future is still uncertain, as the studio's management is currently in talks with a works council of employees over various 'strategic options'.

Xbox Strategy

Asha Sharma has stated that Xbox's current business is not healthy, and the company needs to change its strategy. She said that Xbox has acquired many studios in the past few years, but this has not yielded the expected results.

Future Plans

Microsoft has announced that it will work to make its business more focused and efficient. The company has appointed Helen Chiang as its chief operating officer, who will work across content, hardware, platform, and services.