Reports and rumors of massive layoffs at Xbox have been building since late last month, and the first blood has now been spilled. Bloomberg reports that Candy Crush maker King is cutting 200 employees,

Microsoft Corp.’s gaming division began cutting hundreds of employees on Wednesday, part of a broader culling at the software company as it seeks to control costs. Subsidiaries across the gaming organization were told that they would be affected by the layoffs.

The cuts began on July 2, shortly after the end of Microsoft’s fiscal year. An internal memo from Xbox head Phil Spencer confirmed the decision, stating the company would “end or decrease work in certain areas of the business” as it shifts focus toward long-term goals.