Double Fine Cuts 23 Jobs as Microsoft Resets Xbox After 7% Annual Revenue Drop
Updated
Updated · GamesIndustry.biz · Jul 28
Double Fine Cuts 23 Jobs as Microsoft Resets Xbox After 7% Annual Revenue Drop
3 articles · Updated · GamesIndustry.biz · Jul 28
Summary
Double Fine cut 23 roles days after separating from Xbox, making the studio one of the first visible casualties of Microsoft’s gaming overhaul.
7% lower annual Xbox revenue and a 10% fourth-quarter decline drove the reset, with hardware revenue down 29% for the year and content and services down 10% in the quarter.
1,600 Xbox jobs were cut in the latest round within Microsoft’s 4,800 layoffs, and the company signaled further FY27 reductions that would bring Xbox-related cuts to 3,200 roles.
Four studios were also reshuffled: Double Fine and Compulsion became independent, Undead Labs and Ninja Theory entered ownership talks, and Arkane Leon began reviewing strategic options.
$331.8 billion in annual Microsoft revenue still rose 18%, underscoring how weakness in Xbox contrasted with strong cloud growth as Nadella targets a return to gaming growth in fiscal 2027.