Cutting corners: The first wave of massive layoffs that Microsoft teased several weeks ago has arrived. Most of the losses will hit the Xbox division over the next year as the company consolidates its gaming strategy. Microsoft will spin off Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, while Arkane enters labor negotiations. Bethesda, ZeniMax, id Software, Activision, Obsidian, and Microsoft's accessibility team will all see deep cuts.