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Xbox gaming chief Asha Sharma has rejected sale rumours while Microsoft restructures its studios, changes Game Pass and prepares its next-generation console.
Microsoft’s Xbox Game Studios has fallen from a broad network of first-party teams to three core developers, with further restructuring still possible.
Bethesda workers used an inflatable rat, 800 red flags, posters and balloons to protest Xbox layoffs during a visit from Microsoft leadership.
Satya Nadella’s latest Xbox comments point to layoffs, studio changes and a planned fiscal 2027 recovery, sharply contrasting with last year’s confident update.
Asha Sharma’s new Xbox memo sets four priorities, a 1 billion daily-user ambition and a recovery plan following major layoffs and declining revenue.
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