Xbox Unveils Massive Restructuring Plan Amidst Layoffs and Studio Changes
Asha Sharma, Xbox's CEO, has announced a major 'reset' of the business. This comes after she took over in February and cited significant challenges including a 3 percent 'accountability margin,' component prices that are massively higher due to shortages, and an 'over extended' studio system.
In a memo sent to staff on June 10th, Sharma and newly promoted chief content officer Matt Booty warned of an Xbox reset. This move is part of broader cuts across the company.
On July 6th, Microsoft announced mass layoffs at Xbox with about 1,600 staffers let go that day, and 1,600 more set to be cut over the next fiscal year, as stated by Sharma.
The restructuring also includes changes in studio ownership. Compulsion Games and Double Fine Productions will become independent again, while Ninja Theory and Undead Labs will get new owners.
Xbox has already made other major changes under Sharma's leadership, including upcoming price hikes for consoles, lowering Game Pass prices but cutting out new Call of Duty games, rebranding Xbox to XBOX, and making Gears of War: E-Day and Clockwork Revolution Xbox console exclusives.