Xbox will cut approximately 3,200 positions and separate from four studios in a sweeping reorganization that CEO Asha Sharma described in a staff email as the most significant restructure in Xbox history. Sharma pointed to persistently low margins, slower-than-expected returns on major bets, and an acute hardware crisis across the sector as the reasons behind the reset.

Sharma wrote that owning every promising independent team “is neither possible nor desirable.”
The email added that the industry is now confronting the most severe hardware crisis in its history, forcing a full reset.
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