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Gamespot
Xbox's New Plan After Brutal Cuts
In light of mass layoffs affecting 20% of its workforce, Xbox has announced a refocused strategy that prioritizes its flagship console and established franchises. CEO Asha Sharma emphasized that the company spread itself too thin, leading to recent declines in hardware revenue by 33%. As Xbox restructures, the challenge remains with rising costs and supply shortages in the gaming hardware sector. The need for streamlined operations is critical for long-term viability.
MonitorConfidence: MediumShort term horizonSupply chain risk: High
Published 7 Jul 2026, 15:55 UTC2 min read
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Summary
TL;DR
- Xbox laid off 3,200 employees, about 20% of its workforce.
- Plans include a renewed focus on core business and support for major IPs.
- Xbox hardware accounts for 80% of the company's business.
- The Xbox Series X has seen its price rise from $500 to $800.
- Microsoft is exploring disc-less options for its next-gen console, Project Helix.
Interesting facts
- The Xbox Series S has also increased in price, from $250 to $500.
- Expert opinions describe the recent restructuring as a reflection of mismanagement.
- Plans for a disc-to-digital feature indicate a shift in consumer hardware usage.