News Microsoft says today’s Xbox shake-up doesn’t mean game studio layoffs

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‘there are no organizational changes underway for our studios.’

Feb 20, 2026, 8:58 PM UTC



Sean Hollister is a senior editor and founding member of The Verge who covers gadgets, games, and toys. He spent 15 years editing the likes of CNET, Gizmodo, and Engadget.

Xbox has new leaders today, now that Phil Spencer and Sarah Bond are out — and you’d be forgiven for assuming that means yet another round of layoffs and shuttered studios, especially one day after Sony jettisoned a beloved developer.


Not yet, it seems. “To be clear, there are no organizational changes underway for our studios,” Microsoft Gaming EVP Matt Booty wrote in his memo today. It’s a little buried under everything else Microsoft’s outgoing and incoming gaming CEOs are saying, so figure it’s worth dragging to the surface!


We have good reasons to believe in what’s ahead. This organization and its franchises have navigated change for decades, and our strength comes from teams who know how to adapt and keep delivering. That confidence is grounded in a strong pipeline of established franchises, new bets we believe in, and clear player demand for what we are building.

My focus is on supporting the teams and leaders we have in place and creating the conditions for them to do their best work. To be clear, there are no organizational changes underway for our studios.
Richard Lawler4 seconds ago
Andrew WebsterFeb 20
Sean HollisterFeb 20
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