Microsoft announced major layoffs and budget cuts within its Xbox gaming division. This marks the first significant restructuring since Asha Sharma became CEO in February. The division currently faces operational challenges and declining console sales.
An internal memo reveals Xbox profit margins have dropped to 3%. Microsoft invested over $20 billion into content, platform development, and hardware subsidies over the last five years. The restructuring aims to address financial pressures and rebuild platform infrastructure.
The company is reassessing its product lineup and overall strategy. Planned changes include new Game Pass subscription pricing. Microsoft is also reviewing the launch policy for future Call of Duty titles.