Xbox warns of a ‘reset’ as it prepares for layoffs

Microsoft is preparing significant layoffs across its Xbox division next month, with reports pointing to cuts in marketing and other parts of the business. Xbox leadership has been signaling hard choices, and sources say the moves could include changes to the studio lineup or even a studio closure.

The cuts suggest Microsoft is tightening Xbox spending after years of major gaming investments, including acquisitions and expanded studio operations. A potential studio reset would reflect broader pressure across the games industry to prioritize profitability over growth at any cost.

Microsoft's Xbox division will be hit with significant layoffs next month, according to people familiar with Microsoft's plans. The company has been preparing for the layoffs internally for weeks, with Xbox CEO Asha Sharma hinting about "making hard choices" last month. Sources suggest the cuts could even involve a studio closure, or changes to the Xbox studio lineup. In a recent Giant Bomb episode, rumors of 1,000 layoffs for Microsoft's Xbox division were mentioned. Bloomberg also reported today that the cuts would be "major," and involve budget cuts for marketing and other areas of Microsoft's Xbox business. Moments before Bloomberg's r … Read the full story at The Verge.