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Xbox turmoil continues with a studio closure and executive departures

Xbox is undergoing significant restructuring with the reported closure of Compulsion Games and executive departures, following a memo from Xbox boss Asha Sharma about an impending 'reset'. The company has been making strategic moves including Game Pass price cuts and securing console exclusives, but faces challenges with an 'overextended' studio system. These developments come amid broader industry challenges and Microsoft's ongoing efforts to position Xbox in the competitive gaming market.

Background

Microsoft's Xbox division has been undergoing significant changes in recent years, including major acquisitions like Activision Blizzard and Bethesda, while facing challenges in the competitive gaming market. The company has been focusing on expanding its Game Pass subscription service and cloud gaming initiatives.

Source
The Verge
Published
Jun 16, 2026 at 01:08 AM
Score
6.0 / 10