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Xbox CEO Asha Sharma outlines major reset amid cuts

gamingJul 6, 2026625,088

Xbox CEO Asha Sharma announced a major reset that will spin four studios out of Microsoft and cut a significant portion of Xbox staff. Microsoft is laying off 4,800 employees companywide today, and more than 30 percent of those losses are in Xbox; an internal memo says roughly 1,600 Xbox employees are affected today and Microsoft plans to eliminate about 20 percent of Xbox roles by the end of the fiscal year in July 2027. Double Fine and Compulsion Games are returning to their founders, while Ninja Theory and Undead Labs are being sold with agreements intended to allow Senua and State of Decay 3 to continue shipping. Arkane Lyon is under consultation with its works council about potential strategic options as its project Blade is delayed and over budget. Sharma said Mojang and King will now report directly to her and framed the moves as a shift toward bigger franchises and fewer smaller acquisitions, adding that Xbox lost money on many smaller studio investments. Sharma acknowledged the pain of a year-long restructuring and said the changes are necessary to simplify management and focus resources.

Commander Sterling
@commandersterling.bsky.social

Xbox CEO Asha Sharma does the impossible and sounds disconnected from reality by *videogame executive* standards. This is one of the most incredibly ridiculous things I’ve heard in my 20 years of following the game industry.

174945d ago
Colin Spacetwinks
@spacetwinks.bsky.social

i think of this in conjunction some with the 90s and credit cards and credit card debt, especially as companies aren't paying employees enough to have disposable income, or are doing mass layoffs (like xbox under asha sharma). they just figure you'll Get The Money somehow. just not from them.

67945d ago
Mat Piscatella
@matpiscatella.bsky.social

"CEO Asha Sharma wants Xbox to reach 1bn players a day (it currently hits 1bn a year)." Oh.

58145d ago
Kotaku
@kotaku.com

Xbox is preparing to lay off around 3,200 individuals, part ways with Compulsion Games, Double Fine, Undead Labs, Ninja Theory, and possibly Arkane Lyon in what CEO Asha Sharma is calling "the most significant res... https://kotaku.com/xbox-layoff-3200-most-significant-restructure-history-2000712836

9545d ago
Quoting this
Matt McMuscles954

Turns out the secret to the problem of not having any exclusive games to attract new customers is get rid of the studios that were making you exclusive games.

Jaina Rodríguez-Grey128

In 2025, Xbox made about 24 billion. Conservatively, that means about 700 million of that was profit. In a year with wars on 2 (sometimes 3) continents, broken supply chains, economic downturn, and skyrocketing hardware prices, Xbox still made almost a billion in net profit and it wasn’t enough.

loren schmidt58

i was already boycotting microsoft because they are on the BDS list, but this makes me wish i could double boycott them.

Jimmy's Hell Cousin51

I don’t know why this isn’t being reported as a company buying up an entire industry, extracting all the money from it to power their plagiarism machine, and then laying everyone off destroying said industry

Jiikae47

Past week has felt like the E3 of bad gaming news

Nessa ✨41

me, loading a grenade launcher and pointing it at my foot: it's a restructure plan

Sherveen Uduwana38

Really hate the framing of these layoffs as a reset when they've been doing layoffs again and again for the past two years. Despite admitting they had a 3% profit margin (AFTER all their acquisitions) this fiscal year. Profitable, Just not as much as their competitors. So lay everyone off I guess

REVY29

‘Most Significant Restructure In Xbox History’ And it's just firing and selling everyone 🫩

𝕮0𝖋𝖋𝖎𝖓𝕮𝖚𝖓𝖙26

Fuck @microsoft.com Fuck @xbox.com fuck every one of these vampires (derogatory). I genuinely can't wait to see these businesses crash and fucking burn.

Quinn Stokan (Chris Voiceman)23

Look at the history of any big game development icon and you'll see a string of small roles in small projects, and often failed projects too, but it was the luxury to learn from those roles that made them who they are. Once they retire, they'll leave no successors because they keep getting fired.

Tom Warren
@tomwarren.co.uk

BREAKING: Microsoft is spinning off four Xbox studios as part of significant gaming cuts. Double Fine and Compulsion Games are going independent, and Ninja Theory and Undead Labs are leaving Xbox to new management. Full details and Xbox CEO's memo here👇 www.theverge.com/news/961546/...

10345d ago
Stephen Totilo
@stephentotilo.bsky.social

Microsoft's new gaming cuts, some 3,200 jobs impacted through June 2027, follow cuts of over 2,500 in 2024 and scores in 2025 A brutal sequence of events The latest round, under Xbox's new CEO, spins out smaller studios and slashes Xbox platform team www.gamefile.news/p/xbox-to-cu...

9345d ago
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