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Xbox Faces Major Reset Amidst Challenges
2 Jul
Summary
- Xbox leadership announced a "reset" citing significant business challenges.
- Layoffs and potential studio closures are expected in July.
- Console prices will increase, while Game Pass tiers are being adjusted.
Xbox is implementing a substantial "reset" as announced by CEO Asha Sharma and chief content officer Matt Booty. This strategic shift comes as the division confronts significant business hurdles, including a reported 3 percent "accountability margin" and substantially higher component prices for consoles due to shortages.
The company's studio system is also described as "over extended." In response, significant layoffs are anticipated around July 6th, with reports suggesting potential studio closures or spinoffs. At least five studios might be affected, with some games potentially canceled.
Under Sharma's tenure, Xbox has already initiated several key changes. These include upcoming price increases for its consoles, a reduction in Game Pass prices accompanied by the exclusion of new Call of Duty titles, and a rebranding of Xbox to XBOX. Additionally, Gears of War: E-Day and Clockwork Revolution will be Xbox console exclusives.
