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.

“To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” Microsoft Gaming CEO Phil Spencer says in a memo to employees.

Microsoft also cancelled Everwild, the action-adventure title in development at Rare, and said it would wind down several unannounced projects.