Xbox CEO Asha Sharma has elaborated on the company's major restructuring, which includes 3,200 layoffs and the divestiture of five internal studios including Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane Lyon. Sharma attributed the downturn to overexpansion — betting on Game Pass, multi-platform, and a broader content portfolio — which diluted focus from the core business. Microsoft spent over $20 billion on Xbox in five years (excluding Activision Blizzard), while revenue dropped an estimated $500 million per year. Platform teams grew 40% larger while player base and play time declined. Sharma plans to reduce management layers from as many as 14 down to a maximum of five, aiming to return Xbox to growth by 2027.
64 Impressions