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Xbox’s ‘reset’: all the news about Microsoft’s looming layoffs and studio closures

Microsoft's Xbox division is undergoing a major strategic 'reset' under new CEO Asha Sharma, involving significant layoffs, potential studio closures, and the cancellation of high-profile projects like Blade. The restructuring aims to address financial challenges, including rising hardware costs and an overextended studio system, while shifting focus toward console exclusives and new business models.

Background

This news reflects a significant corporate restructuring within Microsoft's gaming division, marking a shift from previous expansionist strategies to cost-cutting and consolidation amid broader economic pressures in the tech sector.

Source
The Verge
Published
Jul 2, 2026 at 05:00 AM
Score
9.0 / 10