The sweeping layoffs equate to 2.1% of Microsoft's workforce, with 1,600 immediate job losses at Xbox.
Music and films are now largely digital-only - does the lack of a disc for GTA 6 mean gaming is going the same way?
The Xbox studios racing game is described as one of the best ever made in its genre by critics.
New Call of Duty games will be added to the subscription service "about a year" after release, Microsoft said.
The presenter and long-time video game fan takes over from Phil Wang as the face of the prestigious show.
Microsoft has said the "next-generation" device would "lead in performance" and play both Xbox and PC games, in a departure from its previous machines.
Microsoft is the first big company out of the gates with Project Helix - a "next-generation" console.
It comes after the free-to-play game was given top billing at The Game Awards in December.
The executive shake-up has sparked online debate about new boss Asha Sharma's gaming credentials.
