Microsoft cuts 3,200 Xbox jobs and four studios amid business health concerns

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Microsoft announced sweeping cuts to its Xbox division, including the layoff of 3,200 employees across the current and next fiscal year. Four game development studios will also be shut down as part of the restructuring. Xbox CEO Asha Sharma acknowledged in an internal memo that the business is 'not healthy' and had spread itself too thin. The company says it will refocus its gaming efforts on major titles rather than maintaining a broad portfolio. The move raises questions about Xbox's long-term strategy as Microsoft increasingly directs resources toward artificial intelligence.

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