xbox

Xbox CEO: Past bets left business stretched as major cuts begin

Xbox CEO Asha Sharma said earlier strategic bets — Game Pass expansion, multiplatform moves, and studio growth — spread Xbox too thin and diverted focus from its core business. Microsoft is executing a reset that includes immediate and planned layoffs: about 1,600 roles cut now and roughly 1,600 more over the next year. The company is also spinning out Double Fine and Compulsion, selling Ninja Theory and Undead Labs, and consulting on Arkane Lyon’s future. Microsoft-wide reductions affect about 4,800 positions (≈2% of staff).

• CEO: past bets diverted focus and stretched Xbox
• ~1,600 layoffs now; ~1,600 more planned over next year
• Double Fine and Compulsion spun out; Ninja Theory and Undead Labs for sale
• Microsoft-wide cuts total roughly 4,800 roles (~2% of workforce)