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Xbox CEO Announces Reset, July Layoffs Amid Budget Cuts

6/12/2026

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Summary

Asha Sharma Announces Layoffs

Xbox CEO Asha Sharma announced a “reset” and warned layoffs may start in July after a 3% margin.
She hired Matthew Ball, chief strategy officer, to steer Project Helix amid component shortages.
She revised Game Pass pricing, set exclusives for Gears of War: E-Day and Clockwork Revolution, and halted Copilot AI development.
Bloomberg reported that job cuts are expected in July and that Xbox budgets will be reduced.

Summary

Sharma Warns Storage

Sharma warned storage component prices have risen fivefold since 2024 and could rise another fivefold by end-2027, threatening Xbox production.
She said Xbox may partner with third-party makers to offer licensed or OEM Project Helix units, sharing costs and widening market reach.
Sharma proposed dropping proprietary storage cards for flexible, compress-based storage to mitigate the NAND flash shortage and keep consoles affordable.

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Asha Sharma Announces Layoffs

Xbox CEO Asha Sharma announced a “reset” and warned layoffs may start in July after a 3% margin.
She hired Matthew Ball, chief strategy officer, to steer Project Helix amid component shortages.
She revised Game Pass pricing, set exclusives for Gears of War: E-Day and Clockwork Revolution, and halted Copilot AI development.
Bloomberg reported that job cuts are expected in July and that Xbox budgets will be reduced.

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