Overview
- Xbox published a memo on Thursday, June 11, launching a 100‑day operational reset and saying the division spent over $20 billion in five years (excluding Activision) while annual revenue fell by nearly $500 million.
- Multiple outlets report Microsoft plans significant layoffs and deep budget cuts that are expected to be implemented shortly after the company’s fiscal year ends on June 30, though Microsoft has not confirmed the scale or targets.
- Xbox said it will reprioritize content with a return to selective 'console exclusives,' a term executives clarified means exclusivity for Xbox consoles while many games will still appear on PC and cloud services.
- CEO Asha Sharma warned of a hardware component crisis, saying storage and memory costs have surged and could be more than five times higher by the 2027 holiday season, a pressure that complicates Project Helix and console pricing.
- The reset will also narrow the studio footprint and rebuild platform infrastructure to cut complexity, a move that could include studio lineup changes, reduced marketing, and wider effects on console availability and employees.