Xbox Announces Business Reset Amid Financial Challenges
Xbox is undergoing a significant business reset, including potential layoffs and restructuring, to address declining revenue and rising costs over the next 100 days.
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Xbox announces business 'reset' amid reports of layoffs and studio closures
Xbox CEO Asha Sharma announced a business 'reset' for Microsoft's gaming division, signaling significant layoffs and potential studio closures following years of declining revenue. The memo cites a substantial increase in component costs for hardware and memory, exacerbated by past expansion choices, as a major challenge. Sharma and Xbox content chief Matt Booty aim to revive the company by evolving its business model and partnerships over the next 100 days.
Xbox CEO Asha Sharma and executive vice president Matt Booty publish staff memo ‘Next 100 Days: Xbox Reset’
Xbox CEO Asha Sharma and EVP Matt Booty have outlined a 'reset' plan for the company, acknowledging declining core revenue despite significant investment. The memo details challenges including a hardware component crisis and overextended studio systems, signaling potential major layoffs and restructuring to achieve profitability and a stronger market position.
Next 100 Days: XBOX Reset
An internal message to Xbox employees outlines a 'reset' for the business, highlighting early successes in platform updates, Game Pass growth, and community engagement. The message also addresses significant challenges including declining revenue, a hardware component crisis impacting console production, an overextended studio system, and outdated platform infrastructure, emphasizing the need for strategic adjustments and innovation to become the number one gaming and entertainment company.
Xbox CEO says "we have to reset the business" to "be where the world plays"
Xbox CEO Asha Sharma stated that the brand needs a "reset" to return to growth and "be where the world plays." She acknowledged that Xbox is not currently in a healthy financial spot and that the next 100 days will focus on business adjustments. Sharma also commented on Microsoft's acquisition of Activision Blizzard, noting it occurred before the rise of AI and a different strategic focus.
