Is Microsoft Corporation (MSFT) Stock Impacted by Reported Xbox Restructuring and Gaming Division Changes?
Laiba Immad
Thu, July 2, 2026 at 3:56 PM EDT
2 min read
- MSFT
+1.62%
We recently compiled a list of the 10 Most Undervalued Dow Stocks to Buy According to Wall Street Analysts. Microsoft Corporation (NASDAQ:MSFT) is among the most undervalued stocks
TheFly reported on June 30 that, according to a report by The Verge’s Tom Warren, MSFT is considering canceling its upcoming Marvel’s Blade game as part of planned cost-cutting measures within its Xbox division. The report stated that potential job reductions could impact Xbox studios through closures, restructuring, mergers, or canceled projects. Among the studios reportedly at risk is Arkane Studios, the developer behind Blade. Sources familiar with the situation said the game, which was originally expected to launch later this year, could be discontinued as Microsoft evaluates changes across its gaming operations.
On the same day, IO Interactive announced that its external partnership for Project Fantasy, an original intellectual property, has ended. The developer stated that the change will require adjustments, including staffing decisions, as the company adapts to the new situation. IO Interactive emphasized that it remains fully committed to Project Fantasy and plans to continue developing the game and its universe. The Fly reported that the unnamed partner involved in the agreement was Microsoft’s Xbox division. The update follows recent changes within Microsoft Corporation (NASDAQ:MSFT)’s gaming operations as the company evaluates its studio portfolio and cost structure.
Microsoft Corporation (NASDAQ:MSFT) is a global technology leader specializing in software, cloud computing, and personal computing through products like Windows, Microsoft 365, Azure, and Xbox
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