Microsoft 'resets' Xbox by cutting 3,200 jobs this year, divesting five game studios — firm cites 'margins that are 3-10x lower than comparable platform and publishing businesses'

Microsoft's gaming division is undergoing a significant overhaul, cutting 3,200 jobs and divesting five game studios to boost profitability. Xbox CEO Asha Sharma revealed that the company is addressing lower margins in its gaming sector, which are 3-10 times lower than other platforms. Despite these major changes, no game projects will be canceled, indicating a strategic shift rather than a retreat. This move reflects broader industry pressures and Microsoft's effort to align its gaming business with more profitable models.