Xbox retreats again – but to where? | Opinion

Xbox 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.

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GAME Keeper
COMPANY King
GAME Minecraft
COMPANY Microsoft
COMPANY Blizzard Entertainment
COMPANY Ninja Theory
COMPANY The Initiative
COMPANY Compulsion Games
COMPANY Activision Blizzard
COMPANY Bethesda
COMPANY Mojang
COMPANY Undead Labs
COMPANY Xbox

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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

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