Microsoft is implementing widespread layoffs impacting up to 9,000 employees, significantly affecting its Xbox division. Several studios face closures and game cancellations, including Rare's Everwild and The Initiative's Perfect Dark reboot.

These changes come at a time when we have more players, games, and gaming hours than ever before,” said Xbox head Phil Spencer in an email to staff.

Reports and rumors of massive layoffs at Xbox have been building since late last month, and the first blood has now been spilled. Bloomberg reports that Candy Crush maker King is cutting 200 employees,