Analyst predicts mass layoffs as Xbox CEO Asha Sharma enters second hundred days
Industry analyst Joost van Dreunen says Xbox CEO Asha Sharma will focus on restructuring, including studio closures and layoffs, as the platform navigates a broader industry disruption cycle.
Analyst Joost van Dreunen wrote in his latest newsletter that Xbox chief executive Asha Sharma is entering the next phase of her tenure, which he describes as “the job she was actually hired to do.” He says the focus will be on “whipping Xbox back into shape” amid what he calls a “disruption cycle” in the video-game industry, where cost efficiency and accessibility are becoming more critical than blockbuster releases.
According to van Dreunen, the shift will likely involve further studio closures and mass layoffs, a pattern he notes has recurred at Xbox in recent years. He cites comments from Xbox founder Seamus Blackley, who earlier likened Sharma’s role to that of a “palliative care doctor” guiding the division toward a gradual decline.
Sharma has previously announced price reductions for Game Pass, a refocus on console hardware, and the return of exclusive titles, actions that were initially praised by some fans. However, she recently addressed the Xbox division, acknowledging that the business is not in a healthy state, though she stopped short of attributing the challenges to a lack of financial resources at Microsoft.
The analyst points to Microsoft’s recent acquisition spree as adding pressure to the Xbox unit, suggesting that continued layoffs could further destabilize the broader gaming market.