tl;dr: Microsoft's Xbox chief Asha announced a major restructuring, cutting ~3,200 jobs by FY27 (1,600 immediately) and divesting four studios: Compulsion Games and Double Fine will become independent, while Ninja Theory and Undead Labs move to new ownership (Arkane is under review). Citing margins 3-10x lower than competitors and a "severe hardware crisis," Xbox will flatten management to 3-5 layers, cut vendor spend 50%, and consolidate under a new COO (Helen Chiang). No announced first-party games are cancelled.