Xbox under Asha Sharma to restructure, cut jobs, and shift to exclusives

Microsoft is evaluating a major reorganisation of its Xbox division. New CEO Asha Sharma has outlined a “reset” that could include layoffs in marketing and other operational areas, tighter budgets and a possible spin‑off of Xbox as a separate subsidiary. The plan aims to contain costs after years of $20 billion investment that delivered only modest revenue growth.

At the same time, Xbox intends to increase investment in high‑budget first‑party franchises. Internal sources say the upcoming pre‑quel Gears of War: E‑Day will cost over $400 million and will launch exclusively on Xbox, with a cancelled PlayStation 5 port. The company also faces a component‑cost crisis that may reshape the business model for its next‑generation console, internally codenamed Project Helix.

These moves are intended to boost the value of Xbox’s catalog, improve profitability and position the brand for future growth.