Memo: Xbox CEO Asha Sharma and CCO Matt Booty warn of an “Xbox reset” over the next 100 days, citing annual revenue down nearly $500M over the past five years

www.theverge.com/games/948142...Tom Warren /@tomwarren.co.uk:BREAKING: Xbox warns of a “reset” as it prepares for layoffs. Sources tell me there are major Xbox layoffs coming next month, and the cuts may even involve a studio closure. Details 👇 www.theverge.com/games/948142...Forums:r/Steam:Xbox ‘console exclusives’ are strictly about console releases, Xbox exec affirms: Games will ‘still show up on all the normal places where we sell the PC version’r/xbox:XBOX preparing for new layoffsr/conso

The Verge 2026-06-11

Context & Ripple Effects

Related coverage places the memo after repeated Xbox workforce-cut reports, including a substantial round anticipated in 2025. The reset language turns those episodic cuts into an explicitly stated effort to reshape the business.

The coverage also links the pressure to a revenue decline and to a distribution stance in which Xbox games remain available through normal PC storefronts. That makes the reset about both cost structure and how Xbox reaches players, not solely its console lineup.

First-order effects

Xbox employees, marketing teams, and potentially at least one studio face near-term uncertainty as leadership prepares a restructuring and sources report major layoffs and budget cuts.
Xbox is signaling that its current operating model must change; the reported revenue decline provides the internal rationale for tighter spending and portfolio review.

Second-order effects

Studios and game teams will face stronger pressure to justify budgets and fit a narrower Xbox slate, while external development, marketing, and service partners could see reduced demand.
Keeping PC versions on established storefronts broadens Xbox’s distribution options, but also makes the business less dependent on console-only releases as the organizing principle for its games.

Third-order effects

If repeated cuts and studio divestments continue, Xbox could emerge as a smaller, more selectively funded publisher rather than an organization expanding through a broad studio portfolio.
The pattern points to a structural test for subscription-led game strategies: spending on content does not by itself change player behavior, so platform holders may increasingly prioritize proven engagement and wider distribution.

The trend: Xbox’s reset is one data point in the game industry’s shift from expansion-through-content acquisition toward tighter portfolio management, lower fixed costs, and multiplatform reach.

Discussion

@wario64 @wario64 on x
Bloomberg: Xbox Plans Significant Layoffs as It Transforms Under New CEO - first major cuts in July ‘Xbox is also planning to significantly slash budgets for marketing and some other areas of the business’ https://www.bloomberg.com/... [image]
@shinobi602 @shinobi602 on x
Xbox plans ‘major reset’ at the company going forward as the business falls under strain: ▪️Excluding Activision, Xbox has lost roughly half a billion dollars in revenue per year over the past five years ▪️Will end this fiscal year at ~3% profitability, down year-over-year [image…
@idlesloth84_ @idlesloth84_ on x
Microsoft published the letter “Next 100 Days: XBOX Reset” that was sent to Xbox employees via: XBOX Wire [image]
@nib95_ @nib95_ on x
#Xbox CEO Asha Sharma and XGS head Matt Booty posted an update on the state of Xbox and platform reset plans. Some choice titbits: 1. Margins. Xbox had just 3% accountability margin (similar to operating income or profit) this last fiscal year. For context, PlayStation's [image]
@wario64 @wario64 on bluesky
The Verge on Xbox layoffs: “Sources suggest the cuts could even involve a studio closure, or changes to the Xbox studio lineup” www.theverge.com/games/948142... [image]
@jaypeters.net Jay Peters on bluesky
Rough to go from a celebratory video game show on Sunday to an impending “Xbox reset” today — www.theverge.com/games/948142...
@tomwarren.co.uk Tom Warren on bluesky
BREAKING: Xbox warns of a “reset” as it prepares for layoffs. Sources tell me there are major Xbox layoffs coming next month, and the cuts may even involve a studio closure. Details 👇 www.theverge.com/games/948142...
r/Steam r on reddit
Xbox ‘console exclusives’ are strictly about console releases, Xbox exec affirms: Games will ‘still show up on all the normal places where we sell the PC version’
r/xbox r on reddit
XBOX preparing for new layoffs
r/consoles r on reddit
Xbox warns of a ‘reset’ as it prepares for layoffs
r/pcgaming r on reddit
Xbox ‘console exclusives’ are strictly about console releases, Xbox exec affirms: Games will ‘still show up on all the normal places where we sell the PC version’
r/TESVI r on reddit
Breaking down Matt Booty's statement on TES VI
r/LastStandMedia r on reddit
Xbox Chief Content Officer Matt Booty on Shifting Exclusivity Strategy, Working With Asha Sharma and Why ‘Blade’ and ‘Elder Scrolls 6’ Didn't Make It Into Showcase
Pure Xbox Fraser Gilbert on x
Xbox Leaders Outline Five ‘Realities’ That Will Be Addressed Over The Next 100 Days
Gameranx Ryan Parreno on x
XBOX CEO Asha Sharma's Newest Promise Is Hiding In Plain Sight: Expect Signature Exclusives From Us Every Year
Gameranx Ryan Parreno on x
3 % Margin: Asha Sharma Reveals XBOX Business' Industry Secrets In Shocking Public Letter
XBOX Wire XBOX Wire on x
Next 100 Days: XBOX Reset
Pure Xbox Fraser Gilbert on x
Report: Xbox Set For Major Job Cuts, Studio Closure Or ‘Lineup Changes’ Could Be Involved
Pure Xbox Fraser Gilbert on x
Xbox Boss Wants To Create The ‘Number One’ Gaming Company By ‘Resetting The Business’
@layoffai @layoffai on x
XBOX LAYOFFS COMING - Bloomberg New CEO Asha Sharma calls it a “reset.” That means major layoffs, expected right after Microsoft's June 30 fiscal year-end. Microsoft already had a voluntary retirement program back in April, offering buyouts to roughly 8,750 US employees. [image]
Jason Schreier Jason Schreier on linkedin
BREAKING: Xbox is planning major layoffs next month, Bloomberg has learned, as new CEO Asha Sharma confronts a bleak picture and plans what she calls a “reset” of the business …
@gematsu.com @gematsu.com on bluesky
Xbox CEO Asha Sharma and executive vice president Matt Booty publish staff memo ‘Next 100 Days: Xbox Reset’ — Xbox CEO Asha Sharma and Xbox executive vice president and chief content officer Matt Booty have published a memo sent to Xbox staff today, discussing the company's fir…
@mackeza Keza MacDonald on bluesky
Sunday: fly a bunch of fans and influencers and press out to LA and show off a bunch of promising stuff in a big fancy showcase. Wednesday: announce forthcoming layoffs and restructuring across all the game studios you recently spent billions acquiring. — news.xbox.com/en-us/2…
@stephentotilo Stephen Totilo on bluesky
The email also refers to Microsoft as being “over extended” after expanding their game studios operations — They've published it now, so you can read it yourself: news.xbox.com/en-us/2026/0...
@knoebel @knoebel on bluesky
~ Asha and Matt ~ have published an... idk it's sounds like a manifesto... about the next 100 days for Xbox or “XBOX Reset”. — news.xbox.com/en-us/2026/0... [image]
r/consoles r on reddit
Next 100 Days
r/IndianGaming r on reddit
Xbox Plans Significant Layoffs as New CEO Plans Overhaul
r/videogames r on reddit
Xbox Plans Significant Layoffs as It Transforms Under New CEO
r/gaming r on reddit
Xbox warns of a ‘reset’ as it prepares for layoffs
r/consoles r on reddit
Xbox warns of a ‘reset’ as it prepares for layoffs
r/XboxSeriesS r on reddit
Next 100 Days: XBOX Reset - XBOX Wire
r/PS5 r on reddit
Xbox's new CEO pulled the new Halo trailer from State of Play, “potentially damaging the relationship between the two companies”
r/pcgaming r on reddit
Jason Schreier: Xbox Plans Significant Layoffs - Asha Sharma's first major cuts will arrive in July
r/xbox r on reddit
Next 100 Days: XBOX Reset
r/LastStandMedia r on reddit
Xbox Plans Significant Layoffs as First Major Cuts Will Arrive in July
r/Games r on reddit
Next 100 Days: XBOX Reset - XBOX Wire
r/kindafunny r on reddit
Next 100 Days: XBOX Reset - XBOX Wire
r/technology r on reddit
Xbox Plans Significant Layoffs as It Transforms Under New CEO

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