This is all MSFT spin.

The studios mentioned don’t all have enough funding to continue to be operational at their current burn rates. Those studios will be doing their own layoffs or may not survive at all.

Those studios account for under 30% of the 1600 jobs that MSFT is removing from their payroll today. As the day goes on there will be news that breaks of other studios under their banner that have layoffs which contribute to the total mentioned. It’s likely that their individual stories will be lost under this initial announcement.