Xbox implements growth strategy following major restructuring

Xbox leader Asha Sharma has outlined a strategic plan to drive growth in players and revenue by the end of June 2027. In an internal memo, Sharma identified several factors contributing to recent challenges, including high hardware costs, an excessive number of internal studios, and a lack of clear organizational accountability. A central component of this new direction is a renewed focus on consoles, marking a shift from the recent emphasis on cloud gaming and subscription services.

Following massive restructurings and layoffs in July 2026, tensions have emerged within developer studios. Chris Hays, a lead services programmer at id Software with over 15 years at the company, criticized the impact of the workforce reductions. Speaking on the Well Played podcast, Hays argued that the current staffing levels make developing AAA games, such as Doom: The Dark Ages,