Microsoft Sheds Five Major Studios in Massive Xbox Restructuring

Well, the other shoe has finally dropped. After weeks of rumors and hand-wringing, Microsoft has confirmed the scope of its Xbox overhaul — and it is substantial. The company is cutting 3,200 positions across its gaming divisions, with 1,600 going effective immediately. But the headlines are really about the studios being let go. Double Fine, the beloved Psychonauts shop led by Tim Schafer, is heading back to independence. So is Compulsion Games, the team behind South of Midnight. Ninja Theory