New reports indicate that Microsoft's planned layoffs of its Xbox games division may drastically affect its teams and entire development studios may close.

Microsoft is bracing for another major shakeup. The tech behemoth is expected to slash jobs in its Xbox division next week as part of a sweeping internal restructuring. Managers in the gaming unit are already bracing for substantial cuts,

Microsoft’s gaming business is seemingly in for another round of mass layoffs. The fresh cuts would be coming just as Xbox seems to be in full retreat from its long-standing console hardware business as it invests more in Windows gaming and bringing first-party exclusives to PlayStation 5.