Xbox CEO Asha Sharma has announced a major restructuring that will lay off 3,200 employees, with 1,600 departing immediately. Four studios — Compulsion Games, Ninja Theory, Undead Labs, and Double Fine — are being moved to new management or transitioning to independent studios. The restructuring spans Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and Xbox Game Studios. Sharma cited unhealthy business margins running 3–10x lower than comparable platforms, slower-than-expected growth from Game Pass and multi-platform bets, and a severe industry hardware crisis as reasons for the reset. First-party announced titles like Fable, Gears of War: E-Day, and The Elder Scrolls 6 are not being cancelled. A new COO role has been created and given to Helen Chiang, and the company aims to return to growth by 2027.
