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XBOX could close at least two of its studios by the end of the year

We should undoubtedly brace ourselves for a massive shakeup as part of the "reset" XBOX plans to implement over the next 100 days. Asha Sharma announced this plan last week, and it is expected to result in lots of layoffs.

In an article, The Verge also mentioned the possible closure of an Xbox studio. Unfortunately, the losses could be even greater. According to journalist Mike Straw of Insider Gaming, at least two studios could be shut down by Microsoft by the end of the year.

Straw clarified that this does not involve Obsidian Entertainment or Rare. He added that we should have a clearer picture in the coming weeks. He concluded by noting that "everything is on the table at XBOX" right now.

It wasn't Obsidian or Rare, for those who've asked. I'm working on trying to get more details on what employees are feeling at the moment. But the picture could become clearer in the coming weeks, depending on what decisions get finalized.

But everything is on the table at Xbox

— Mike Straw (@MikeStrawMedia) June 15, 2026