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Xbox's Official Shakeup Continues Through 2027 with New Rounds of Layoffs
Polygon.com • • technology
Key Points:
- Xbox Game Studios has cut 1,868 jobs since July and plans three more rounds of layoffs in October, November, and January under CEO Asha Sharma, targeting company veterans and risking loss of institutional knowledge.
- Microsoft executives, including Jason Althoff, have dismissed rumors of Xbox being sold, with Sharma affirming the division is not for sale.
- Microsoft aims to release a next-generation handheld device in 2027 and its major console, Project Helix, in 2028, with Project Helix potentially costing up to $1,800, comparable to or exceeding the expected price of PlayStation 6.
- Xbox has divested from several studios like Double Fine and Ninja Theory, with some studios facing closure or regaining independence, while others like Halo and Obsidian have been reorganized under different leadership within Microsoft.
- CEO Sharma cited Xbox's unhealthy business state, low margins, and slower-than-expected growth despite strategic bets on Game Pass and multi-platform content, prompting a major company "reset" that will continue to impact Xbox operations.
