Business Strategy
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Xbox CEO Asha Sharma wants the company to "entertain more than a billion people" every day: here's why that's a deeply unrealistic thing to say
Xbox CEO Asha Sharma stated her ambition for the company to entertain over a billion people daily, a goal that significantly exceeds current industry peaks like Fortnite and Roblox. This statement follows news of Xbox studios splitting off and approximately 3,600 layoffs. While challenging, Sharma believes this can be achieved, potentially leveraging King's mobile success with Candy Crush to reach the ambitious target.
Microsoft needs to "reset Xbox," says Asha Sharma, as the company lays off 3,200 employees
Microsoft's Xbox division is undergoing significant restructuring, with approximately 3,200 employees being laid off throughout the 2027 fiscal year, including 1,600 immediately. CEO Asha Sharma stated the business is not healthy and operating at lower margins than comparable companies. Several studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are set to be acquired by new owners.
Xbox's CEO wants its games to cater to 'more than a billion people each day', or 24 times more than the peak population of Steam, which is delusional
Xbox CEO Asha Sharma stated a goal for Xbox to entertain over a billion people daily, a figure significantly larger than the peak concurrent users of platforms like Steam or even the highest subscriber counts for games like World of Warcraft. This ambitious target is discussed critically in light of recent studio closures and layoffs within Microsoft's gaming division.
Xbox cuts 3,200 staff as four studios to exit Microsoft – Arkane under review
Microsoft has announced significant layoffs affecting approximately 3,200 employees within its Xbox division, with 1,600 staff being let go immediately. Four studios, including Ninja Theory and Undead Labs, are becoming independent or being sold off, while Arkane Lyon's future is under review. This restructuring follows a period of rapid developer acquisitions and aims to refocus Xbox's business strategy.
Xbox are parting ways with Double Fine, Arkane, Undead Labs, Compulsion, and Ninja Theory in the course of thousands of layoffs
Microsoft has announced significant layoffs affecting 3200 employees and is parting ways with five Xbox-owned studios: Double Fine, Arkane, Undead Labs, Compulsion Games, and Ninja Theory. Some studios will become independent or find new ownership, while Arkane's future is uncertain. CEO Asha Sharma cited rising costs, underperforming acquisitions, and a challenging industry landscape as reasons for the "reset."
Xbox cutting 3,200 jobs and parting ways with Double Fine, Compulsion, Ninja Theory, and Undead Labs
Microsoft has initiated a significant restructure of its Xbox division, eliminating 3,200 jobs and parting ways with four studios: Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. New Xbox CEO Asha Sharma stated the cuts are necessary due to underperforming bets on Xbox Game Pass and multiplatform releases, as well as a severe hardware crisis impacting component prices. The company aims to streamline operations, reduce management layers, and foster a more efficient development environment.
PlayStation’s Disc-Free Future Is Starting to Look Like a Walled Garden
Sony Interactive Entertainment's decision to cease manufacturing physical game discs after January 2028 has been met with significant backlash, with many viewing it as a move towards a restrictive digital-only ecosystem. This shift prioritizes Sony's control over ownership and revenue, potentially alienating consumers and impacting retailers who rely on physical sales. The company's move is seen as a strategic business decision driven by increasing digital sales and a desire to control the market, rather than consumer preference.
Xbox Appoints Helen Chiang as COO, Studios to Only Have Maximum of 5 Management Layers
Xbox CEO Asha Sharma announced significant changes to the division's operational structure, including reducing management layers to a maximum of five and appointing Helen Chiang as the new Chief Operating Officer. These changes follow recent layoffs affecting approximately 1,200 employees, with plans for further reductions. The restructuring aims to streamline workflows, improve accountability, and refocus investment for future growth, while four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released from Xbox.
Xbox Announces 3,200 Layoffs for Fiscal Year 2027, Four Studios to be Released
Xbox CEO Asha Sharma announced significant layoffs affecting approximately 3,200 employees, with 1,600 layoffs occurring immediately. Four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released. Sharma cited lower-than-comparable margins and industry hardware challenges as reasons for the restructuring, aiming to reset Xbox's business focus.
Games Inbox: Giving up consoles because of PS5 going digital-only
Readers discuss Sony's potential shift to an all-digital PlayStation 5, with concerns about game ownership, pricing, and accessibility for those with poor internet. Some readers are considering switching to PC or Nintendo, while others see digital as a convenient and inevitable evolution, provided consumer rights are protected.
Instead of putting its games on PC, Sony apparently wants to escape the reputation that "PlayStation equals the living room" by selling monitors and speakers
Sony is reportedly shifting its strategy away from solely focusing on the living room console experience, aiming to reach PC gamers through peripherals like monitors and speakers rather than exclusively through PC game releases. Executives discussed broadening usage scenarios and delivering unique value beyond hardware, while acknowledging potential for expansion beyond consoles, particularly for live service games.
Morning Mobilization
Samsung Messages is scheduled to shut down this month, impacting users of the messaging service. Separately, an analysis suggests Microsoft's acquisition of Skype for $8.5 billion has been followed by a decade of mismanagement.
Why Sony Is Killing Disc-Based PlayStation Games And The Implications For PS6 And Beyond
Sony will cease releasing PlayStation games on physical discs starting in 2028, a move industry expert Piers Harding-Rolls suggests will likely delay the PlayStation 6's launch until at least that year and will result in a disc-less base model. This transition to all-digital is driven by shifting consumer preferences towards digital downloads, which now account for 80% of PlayStation game sales, and aims to streamline retail and improve profit margins by reducing costs associated with disc manufacturing and physical distribution.
Games Inbox: Will there be a definitive PS6 version of GTA 6?
Readers discuss the potential for Grand Theft Auto 6 to be released on the PlayStation 6, speculating on performance and exclusivity deals with Sony and Rockstar Games. Other topics include the possibility of a Dead Rising 2 Deluxe Remaster, the future of Nintendo Switch 2's lineup, and the financial implications of Microsoft's acquisition of Activision Blizzard.
IO Interactive Layoffs: Xbox Pulls Project Fantasy Funding — Too Much Gaming | Video Games Reviews, News, & Guides
IO Interactive is continuing work on Project Fantasy despite Xbox pulling its funding, and will now seek alternative funding or self-publish. This is part of a larger "reset" at Xbox under new CEO Asha Sharma, with reports indicating several studios like Ninja Theory, Compulsion Games, Undead Labs, Arkane, and Double Fine are in talks to avoid closure. Xbox is reassessing its investment priorities to better fund its existing franchises and ensure a reliable pipeline of exclusive content.
Xbox Focusing On “Highest Priorities,” Claims It’s Not Cutting Back Overall Spending On Games
Microsoft's Xbox division is re-focusing its spending on 'highest priorities,' leading to the cancellation of funding for IO Interactive's Project Fantasy. A spokesperson stated that overall investment in games remains the same as last year, but the types of projects being backed are changing. This shift is part of a broader business 'reset' at Xbox, which may include layoffs and studio changes.
Hearing about the future of PlayStation from its top dogs made me so depressed I had to go lie down
Sony Interactive Entertainment executives discussed PlayStation's future focus on monetizing its existing user base through recurring revenue like PS Plus, rather than solely on increasing Monthly Active Users. They also highlighted Artificial Intelligence as a key foundational technology for improving development efficiency and player experience in the long term, while aiming to deliver unique value for next-generation platforms beyond PC alternatives.
PlayStation – and The Gaming Industry – Just Doesn’t Learn With Live-Service
Despite numerous high-profile failures and significant layoffs within studios like Bungie and Quantic Dream, Sony Interactive Entertainment, led by Hideaki Nishino, remains committed to pursuing live-service games. This strategy is questioned due to past setbacks and the company's historical strength in single-player titles, with concerns that chasing trends is leading to wasted investment and development resources.
"Everybody got the rug pulled out from under them": Xbox are putting third-party Game Pass deals "on pause", claims publishing veteran
Industry veteran Fernando Rizo claims that Microsoft has put a pause on new third-party deals for Xbox Game Pass as the company reassesses its gaming business strategy. This alleged halt comes as Microsoft's financial year ends and follows decisions to reduce the price and remove day-one Call of Duty releases from the service. While Rizo believes Game Pass is not over, he suggests a hiatus on new third-party acquisitions is likely.
Xbox reportedly stops signing third-party Game Pass deals
Xbox has reportedly halted new third-party deals for Game Pass, with sources indicating that developers were informed of a pause in negotiations. This decision comes as new Xbox boss Asha Sharma assesses the company's strategy following significant acquisitions and a recent price increase on consoles. While the future of third-party content on Game Pass is uncertain, the service remains a key component of Xbox's business model.
