Xbox is going through a reset. CEO Asha Sharma and content chief Matt Booty sent staff a memo warning of serious challenges — a 3% accountability margin, soaring component costs from the memory shortage, and an overextended studio system. Layoffs are expected on July 6. The Verge reports Microsoft could close at least five studios and cancel games like Blade.
It’s not just layoffs. Xbox prices are going up another $100 or more. Game Pass prices are dropping, but new Call of Duty games won’t be included. The brand got a rebrand — Xbox is now XBOX. And exclusives like Gears of War: E-Day and Clockwork Revolution are coming back as console exclusives.
Ninja Theory, the studio behind Hellblade, is being shut down. More studio closures and executive departures have followed. Microsoft hasn’t ruled out spinning off Xbox entirely.
The company is looking at radically different console business models. RAMaggedon — the memory shortage — is making Xbox rethink its Helix console. They hired analyst Matthew Ball to lead strategy. Fans want exclusives, backward compatibility, and free online multiplayer.
On the bright side: Xbox will reportedly still publish Hideo Kojima’s OD. 007 First Light’s developer laid off staff but says its next franchise continues.
