Skip to content

Xbox CEO Asha Sharma outlines major reset amid cuts

gamingJul 6, 2026473,327

Xbox CEO Asha Sharma announced a sweeping reset that spins off four studios and will cut about 20 percent of Xbox jobs by the end of the financial year in July 2027. Microsoft is laying off 4,800 employees companywide, and Sharma’s memo says roughly 1,600 Xbox roles are affected immediately, with additional reductions to reach the 20 percent target. Double Fine and Compulsion Games are returning to their founders, while Ninja Theory and Undead Labs are being sold with agreements to ensure Senua and State of Decay 3 continue to ship. Sharma said the restructuring is the "most significant" in Xbox history and acknowledged the pain of a year-long process, while insisting no first-party announced games are being cancelled as part of the cuts. Arkane Studios in France is undergoing consultation with its Works Council to review strategic options, leaving the future of Blade uncertain. As part of the reshuffle, Mojang and King will report directly to Sharma and some larger cuts are expected across Bethesda/ZeniMax and other studios. Sharma framed the move as a shift away from owning many smaller indie studios toward focusing on bigger franchises and supporting independent creators through tools and audiences instead of ownership.

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.

11542h ago
Mat Piscatella
@matpiscatella.bsky.social

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

4973h 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.

4083h 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

784h ago
Quoting this
Matt McMuscles660

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-Grey110

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.

Jimmy's Hell Cousin42

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

Jiikae35

Past week has felt like the E3 of bad gaming news

Sherveen Uduwana31

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

Nessa ✨28

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

REVY27

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

𝕮0𝖋𝖋𝖎𝖓𝕮𝖚𝖓𝖙21

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)20

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.

👑TTTTTsd👑19

Rake stepping was being too kind I must concede. This is more akin to putting yourself in a washing machine and turning it on

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...

833h ago
3 sources