Xbox strategy under CEO Asha Sharma draws criticism and layoff concerns

Microsoft’s Xbox division, now led by CEO Asha Sharma, has pledged new exclusive titles and a continued focus on its Game Pass subscription service. Within weeks of the Xbox Games Showcase, rumors surfaced of substantial staff cuts and possible studio closures, suggesting internal turmoil.

Former PlayStation executive Shawn Layden posted on LinkedIn accusing the new Xbox strategy of a “basic misunderstanding of how the interactive entertainment world works.” He described an ongoing identity crisis at Xbox, questioning the emphasis on live‑service games, subscription obsession, and dependence on blockbuster hits.

The criticism highlights growing tension over Microsoft’s direction for its gaming business and raises uncertainty for developers and players alike.