King spared in Xbox reorganization as Microsoft pivots to mobile live-ops
Summary
Microsoft's 3,200-job Xbox cut spares King, signaling a pivot to high-margin mobile live-ops
King and Mojang now report directly to Xbox CEO Asha Sharma - a structural promotion no other studio received
Compulsion, Double Fine, Ninja Theory, and Undead Labs are being spun out as console overhead is stripped
"They have 12-24 months to show some new games or improvements to the bottom line before any cuts"
01
King elevated above the Xbox divisional layer
3,200 Xbox roles cut across two waves: 1,600 confirmed, 1,600 next financial year
Four King sources confirm zero internal layoff communication in this round
King and Mojang now report directly to Sharma, bypassing the Xbox divisional layer
"These two studios have increasingly become platforms and are our largest by monthly active players"
02
Console studios absorb the cuts King avoids
Compulsion, Double Fine, Ninja Theory, and Undead Labs are being spun out of Xbox
Arkane Lyon is in consultation for the same spin-out path
Reported cuts have hit Id Software, ZeniMax Online Studios, and Bethesda Game Studios
Candy Crush and Farm Heroes Saga are cited by sources as Microsoft's standout gaming performers
03
AI tooling is the efficiency template being stress-tested at King
King cut ~200 jobs in summer 2025, roughly 10% of headcount, concentrated in Stockholm
Barcelona lost 30 roles, with further cuts in London, Berlin, and remote staff
Level design and copywriting teams were reduced after building the AI tools that replaced them
"Most of level design has been wiped - now those AI tools are basically replacing the teams"
King publicly refuted in March 2026 that AI had replaced jobs
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