Xbox CEO Admits Overextension Led to Layoffs
Xbox CEO Asha Sharma has revealed that significant layoffs and restructuring were necessary due to a lack of focus. She stated the company spread its resources too thin across various ventures. These changes aim to refocus on the core console business and address hardware challenges.
source coverage
8unique sources
articles clustered
9articles
story updated
- Engadget Podcast: Xbox resets with layoffsThis episode of the Engadget Podcast discusses the recent layoffs at Microsoft's Xbox division. The conversation features Mike Futter of the Virtual Economy Podcast, offering insights into the situation.
Man behind Xbox backwards compatibility laid off as 25% of Obsidian devs cutMicrosoft has laid off Kevin LaChapelle, the key figure behind Xbox's backwards compatibility and cloud gaming features, as part of broader cuts affecting 3,200 employees. Several development studios, including Compulsion Games and Double Fine, have become independent or are being sold off. Approximately 25% of Obsidian Entertainment's staff has also been impacted by these layoffs.
Xbox CEO Asha Sharma points the finger at Phil Spencer's strategy for yesterday's sweeping layoffs: 'We…Xbox CEO Asha Sharma has attributed recent sweeping layoffs and studio spinoffs to the previous strategy under Phil Spencer, stating that "we spread ourselves too thin" by making too many bets and not focusing on the core business. Sharma believes a return to a more conventional, console-focused approach is necessary for Xbox's health, despite rising hardware costs and potential customer debt from new financing models.
Xbox retreats again – but to where? | OpinionXbox CEO Asha Sharma announced significant layoffs affecting thousands of employees across various studios as part of a company 'reset' to focus on profitable franchises. This move raises questions about the future of Xbox's first-party strategy, its Game Pass subscription service, and the upcoming console generation, particularly given the high cost of components and the blurring lines between PC and console gaming.
Xbox CEO amidst layoffs: 'I think our core has to be healthy'Xbox CEO Asha Sharma addressed significant layoffs and a major restructure within the company, stating the core business needs to be healthy. She highlighted the need for new business models, including exploring hardware options like 'buy now, pay later' and expanding availability on mobile and PC. Sharma also noted that Xbox's operating margins are considerably lower than comparable businesses, attributing challenges to surging component costs and overextending studio systems.
Xbox CEO Asha Sharma says "a healthy Xbox could weather" the current storm, but Microsoft's gaming brand…Xbox CEO Asha Sharma stated that the recent layoffs and significant restructuring at Microsoft's gaming division were necessary due to a lack of focus on the core business and spreading resources too thin. She admitted that a healthier Xbox could have better weathered the current hardware cost crisis, and outlined plans to refocus on the flagship console, explore new business models, and expand availability on PC and mobile.
The Gaming Industry Is Eating Itself AliveXbox is undergoing a massive restructuring, including 3,200 layoffs, impacting numerous studios and divisions like Activision, Bethesda, and Blizzard. While some studios regain independence and first-party projects remain safe for now, the article criticizes Xbox's overall strategy, citing Game Pass's performance and declining hardware revenue. The piece also touches on PlayStation's similar issues with digital ownership and preservation, painting a bleak picture for the future of gaming costs and ownership.
Xbox CEO Says “We Simply Spread Ourselves Too Thin” Following LayoffsXbox CEO Asha Sharma stated that the division "spread ourselves too thin" by making numerous unsuccessful bets, leading to recent layoffs affecting approximately 1,600 employees. As part of a restructuring, four studios are being let go, with Compulsion Games and Double Fine Productions becoming independent, and Undead Labs and Ninja Theory being sold. Sharma also confirmed further job cuts are planned and announced organizational changes, including a new COO, Helen Chiang.- Xbox CEO Reflects On Massive Cuts: “We Simply Spread Ourselves Too Thin”Xbox CEO Asha Sharma stated that the company spread itself too thin with various new ventures, leading to a lack of focus on the core business and resulting in significant layoffs and studio restructuring. Sharma indicated that the Xbox business is not currently healthy, necessitating these changes to address hardware challenges and accelerate necessary adjustments.