Xbox Is Making Huge Cuts As Four Major Studios Are Sold Off

After a series of rumors and debate about its future, Xbox is officially making huge cuts, with four major studios leaving Microsoft’s gaming division. There had been a lot of discussion about potential studio closures within Xbox’s portfolio, with mentions of the legendary RPG studio, Obsidian Entertainment, being closed. After that rumor appeared, there was some talk about other studios being closed, too, but now it has been confirmed that Microsoft is making some changes with its developers, after all.

Jul 6, 2026 - 16:00
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Xbox Is Making Huge Cuts As Four Major Studios Are Sold Off
After a series of rumors and debate about its future, Xbox is officially making huge cuts, with four major studios leaving Microsoft’s gaming division. There had been a lot of discussion about potential studio closures within Xbox’s portfolio, with mentions of the legendary RPG studio, Obsidian Entertainment, being closed. After that rumor appeared, there was some talk about other studios being closed, too, but now it has been confirmed that Microsoft is making some changes with its developers, after all.

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