Overview
- Reporting published Tuesday says Xbox will begin new rounds of layoffs this month with further cuts planned for November and again in January.
- So far 1,868 roles have been eliminated against a target of about 3,200 total for the coming year and management layers have been trimmed as part of the reorganisation.
- Xbox CEO Asha Sharma has described the business as "unhealthy" in internal messages while Microsoft executives have publicly denied any plan to sell the division.
- The shake-up has moved several studios out of direct Xbox control and returned some to independence while other teams such as Ninja Theory have been reported at risk of closure.
- Staff surveys and reporting show rising demoralisation and concern about lost institutional knowledge, a thinner release pipeline, and unconfirmed reports that Xbox is exploring new hardware for 2027 and a console codenamed 'Project Helix' for 2028.