tech
Xbox warns of a ‘reset’ as it prepares for layoffs
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TL;DR
- Xbox division faces significant layoffs and potential studio closures.
- CEO Asha Sharma and CCO Matt Booty warned staff of an 'Xbox reset' in the next 100 days.
- Annual revenue has declined despite over $20 billion in investments over five years (excluding Activision Blizzard King).
- A hardware component crisis is expected, with costs for holiday season 2027 projected to be over five times higher than two years prior.
- Xbox is seeking new business models and partnerships for hardware, possibly involving PC OEMs creating Xbox-branded devices.
- The company plans to rebuild its platform infrastructure and evaluate capabilities across Xbox and potential M&A.
- Recent decisions include making 'Gears of War: E-Day' and 'Clockwork Revolution' Xbox console exclusives.