Microsoft intends to increase funding for key gaming divisions, including Activision, Bethesda, ZeniMax, Blizzard, Mojang, and other Xbox Game Studios.
These changes are occurring amidst the largest restructuring in Xbox's history.
In her address to employees, Xbox head Asha Sharma noted that the cuts would affect various divisions, but some resources would be reallocated to higher-priority projects.
We are also making reductions in other divisions and, in some cases, reallocating investments to focus on higher-priority projects. These changes will affect Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and Xbox Game Studios to varying degrees. However, none of the publicly announced games or projects from our internal studios will be canceled as a result of these changes.
Back in June, reports emerged that Xbox planned to increase spending on game development at its largest studios to accelerate the release of high-budget projects. This primarily concerns Bethesda, known for its long game production cycles.