Rumors have been floated before about an Xbox portable console, but evidence is building that Microsoft may debut a Switch and Steam Deck competitor.

Microsoft Gaming will lay off approximately 650 employees, or 3% of the Xbox owner’s global workforce, in a new round of eliminations following last year’s completion of its $69 billion Activision Blizzard acquisition. The cuts will primarily impact staffers in “corporate and supporting functions,” per Microsoft Gaming CEO Phil Spencer .

Xbox owner Microsoft is to cut about 650 staff from its gaming division in a new round of job losses after its $69bn (£54.3bn) merger deal. The software giant said staff working in "mostly corporate and supporting functions" worldwide would be affected.