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Last month, Xbox executives laid out some “hard truths” about Microsoft’s struggling gaming division that they said would require a difficult “Xbox reset.” This morning, Microsoft revealed the brutal shape of that “reset,” announcing plans for 3,200 layoffs and the divestment of five smaller studios that the company has spent years acquiring and shepherding

Microsoft began executing the most sweeping round of gaming-sector job cuts in years on Monday, July 6 — the first day of its new fiscal year — as thousands of employees across Xbox, sales, and consulting received termination notices and five of the division’s first-party studios faced closure or forced sale. The cuts arrive on…