CEO admits Xbox sees three to 10 times lower margins than "comparable platform and publishing businesses" after Game Pass and multiplatform bets didn't pay off
Xbox CEO Asha Sharma announced a major restructuring for Microsoft's gaming division, including 3,200 job cuts by fiscal year 2027, citing profit margins that are significantly lower than comparable businesses. Sharma admitted that bets on Game Pass and multiplatform releases did not grow as expected, leading to a weakening of the core business and necessitating a reset. Several studios are being spun off or sold as part of this strategic shift.
Retro Gamer
- Entities
- Company Restructuring
- Microsoft
- Ninja Theory
- Profit Margins
- Compulsion Games
- Activision Blizzard
- DoubleFine
- Undead Labs
- Marvel's Blade
- Xbox
- Arkane Studios
- Asha Sharma
- Game Pass
Original source
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