The video game giant owned by Microsoft plans to let 3,200 workers go. Will it be a big reset or a system crash?

That was how game developer Morgan Goin felt when she found out she was being laid off from her job at Xbox-owned ZeniMax Online Studios (ZOS) last week. The senior encounter designer, who worked on popular fantasy role-playing game The Elder Scrolls Online, had known job cuts were coming. For weeks, reports warning of a "bloodbath", external at Microsoft's video game studios had been circulating after the division's new chief executive, Asha Sharma, released a memo saying she planned to "reset the business", external. "We knew something was going to happen to somebody, but not who or how much," says Goin. About a month later, workers learned about 3,200 of them - an estimated 20% of the console-maker's staff - were being let go. Half immediately, with the remaining 1,600 over the next 12 months. Xbox leadership has insisted the "painful" cuts across its sprawling network of studios are necessary to equip it for future success, as it pivots focus to its biggest blockbuster titles. The plan is to put more resources into its most popular series in the hope of getting new instalments out to fans sooner. But former employees say the cuts have eliminated decades of talent and experience, and question whether the company will be able to achieve its aim of "a bigger future".