Microsoft plans to lay off under 2.5 percent of its entire staff. This move includes potential closures of several Xbox game studios. The cuts follow earlier reductions and an internal review that covered the cancellation of the Blade title. Reports indicate Xbox is considering the closure of Arkane and other studios. Multiple outlets confirmed the scale of the next layoff phase. Sources note the company aims to reduce costs. Microsoft states it does not plan reduce investment in games after the cuts. The trend emerged following industry shifts. Five studios face possible closure amid the shifts.