Microsoft has laid off an unspecified number off employees at its development studios.
A spokesperson told CVG the layoffs were made to refocus the company's development efforts. It added however that Microsoft Studios "continues to grow as an overall organisation as we focus and invest in key priority areas that will drive future profitable growth".
It is not clear what studios have been affected by the layoffs.
"At Xbox, our goal is to constantly create new fun, social and interactive entertainment experiences. As part of our commitment to this goal, we are always evaluating our development priorities, and there are times when decisions need to be made to realign plans and refocus our efforts," read a statement.
Microsoft Studios houses a number of developers around the world, including 343 Industries, Black Tusk, Lionhead and Rare.
For more information on the movers and shakers in the global game industry and available job vacancies, you can sign up to our new #DevelopJobs newsletter that is delivered straight to your email every Friday. Click here to subscribe.