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.

▸ entities in this article

COMPANY Microsoft
COMPANY Ninja Theory
COMPANY Compulsion Games
COMPANY DoubleFine
COMPANY Undead Labs
GAME Marvel's Blade
COMPANY Xbox
COMPANY Arkane Lyon

PART OF A STORY

by feed.gg

9 articles · 8 sources 7 days ago

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.

COMPANY Microsoft
COMPANY Xbox

Sources covering this · 8

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. Engadget · 4 days ago
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. Metro UK · 6 days ago
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. PC Gamer · 6 days ago

Show 6 additional articles