Canadian game studio, Xbox Game Studios subsidiary, Montreal
Microsoft has announced 4,800 job cuts companywide, including 3,200 roles in Xbox during fiscal 2027 and 1,600 Xbox positions eliminated immediately. Xbox will spin out or divest five studios and reduce management layers as it restructures to strengthen margins while shifting resources toward AI and core franchises. The move has reduced Xbox headcount by about 20%.
Scotland has built a strong games heritage into a growing, browser-first industry that is expanding reach beyond traditional consoles and stores. New data shows the sector’s rise from 15 companies in 2010 to about 130 by 2024, with Dundee and Abertay University at the fore, while global browser platforms invite small studios to reach audiences directly.