Xbox undergoes restructuring and layoffs amid next-gen hardware leaks

Microsoft's Xbox division is undergoing significant restructuring, including a second wave of layoffs involving 268 positions. This follows 1,600 job cuts in July, representing approximately three-quarters of the company's target for the 2027 fiscal year. The reorganization includes major studio shifts: Activision has taken over World’s Edge and Rare, while Bethesda will oversee Obsidian Entertainment. Additionally, the Playground and Turn 10 studios have been merged to focus on the Forza series.

Epic Games CEO Tim Sweeney has defended these moves, stating that entrusting high-potential projects to the most successful studios makes sense for project success.

Separately, industry leaks suggest that Microsoft and Sony have finalized designs for their next-generation graphics chips. Reports indicate the upcoming Xbox Helix could theoretically reach 56 TFLOPs, potentially outpacing the PlayStation 6, which is rumored to reach 40 TFLOPs. While TFLOP counts are not the sole measure of performance, the hardware designs have reportedly passed the production approval stage.