Microsoft gaming unit faces reset after Xbox showcase
Asha Sharma warned of hard choices days after Xbox’s June event, as reports point to possible layoffs, closures and cancellations.
By James Whitfield · Staff Writer
2 min read
Microsoft’s Xbox division is heading toward major changes after presenting a packed June showcase for players. The warning matters because it came only days after the company used its Summer Game Fest event to promote some of its best-known gaming franchises.
The Verge’s Andrew Webster reported that Microsoft ended Summer Game Fest with its annual Xbox presentation, which included appearances from Halo, Gears of War and Fable. The event also showed a translucent Xbox and included new entries tied to Persona and Crazy Taxi, according to The Verge.
Three days later, newly named Xbox CEO Asha Sharma told staff that the gaming business would undergo a “reset,” The Verge reported. Sharma said that reset would involve “making hard choices,” according to the report.
Since then, The Verge said reports have pointed to looming job cuts, possible studio shutdowns and canceled games across Microsoft’s gaming operation. The report did not say Microsoft had publicly confirmed all of those moves.
One studio named in the reporting is Ninja Theory, which The Verge said is reportedly among the teams at risk. That stands out because the studio had just shown a new game during Summer Game Fest, according to the report.
The Verge framed the moment as a sharp reversal from the upbeat tone of the showcase. Webster wrote that the event recalled the louder years of E3, when major game reveals carried wider cultural attention, but said the following days pointed to a much weaker position for Xbox.
Microsoft entered the console business nearly 25 years ago, The Verge noted. Webster described the current state of the gaming division as its lowest point, citing what he called years of poor decisions and the expected fallout from the coming reset.
The report did not detail which jobs, teams or projects would be affected, beyond the reported risk to Ninja Theory. It also did not give a timetable for any specific cuts or closures.
The uncertainty leaves a split picture for Xbox: a public showcase built around familiar brands and new reveals, followed almost immediately by internal warnings and outside reports of contraction. For players and developers, the next steps from Microsoft will determine whether the June presentation reflected the company’s future slate or the last version of a broader Xbox operation before cuts take hold.
This story draws on original reporting from The Verge.