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Microsoft Xbox Restructures for AI Era | Toronto News
Microsoft is slashing 4,800 jobs across Xbox as part of a major restructuring to reset its gaming strategy, spinning off studios like Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. Despite billions spent on Xbox and the Activision deal, Microsoft lags behind PlayStation and Nintendo, now pivoting toward cross-platform releases. Xbox head Asha Sharma admits the business isn’t profitable enough, while AI pressures mount — driving up costs and forcing console price hikes amid shaky demand. The layoffs aren’t AI-driven, but AI is reshaping how work gets done — all while Microsoft…
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