Xbox CEO Plans Business Reset Amid Layoffs and Budget Cuts

Xbox CEO Asha Sharma plans to 'reset' the business amidst reports of layoffs and budget cuts.

Xbox CEO Asha Sharma is reportedly preparing to reset the business following news of significant layoffs and budget reductions. According to a recent Bloomberg report, the company is set to undergo layoffs in July, along with cuts to marketing budgets and other areas of the business. The report also mentioned Sharma's decision to remove a trailer for Halo: Campaign Evolved from PlayStation's State of Play, potentially straining relations between Xbox and Sony.

Following the Bloomberg report, Xbox made Sharma's internal memo public, where she expressed candid thoughts about the future of the company. The memo highlighted the need for transparency and outlined five 'realities' about the state of Xbox, including revenue decline, a hardware component crisis, and the need to reassess the balance between content pipeline and investment priorities.

Reports suggest that Xbox's cost-cutting measures could result in a studio closure or changes to the studio lineup. Sharma emphasized the challenges faced by Microsoft in terms of console storage components and the impact on the upcoming Project Helix console. This follows remarks from Xbox's Chief Strategy Officer, Matthew Ball, regarding the component crisis and its implications for console production.