After the completion of her initial hundred days as the CEO of Xbox, Asha Sharma publicly addressed the need for a “reset” in the business in a blog post. Pointing out issues like low accountability and decreasing revenues, along with external factors such as the hardware crisis, Sharma’s post hinted at impending layoffs – evident from phrases like “we have found ourselves over extended” and discussions of “hard truths.”
Fast forward to the end of Sharma’s second hundred days, and the promised reset has resulted in numerous layoffs across Xbox studios and business units, as well as the closure or sale of entire studios. This reset, even by industry standards accustomed to layoffs, is notably severe.
However, the concept of a reset typically involves a single major disruption followed by stability. Yet, within Xbox, there is a lack of certainty and stability, with ongoing job cuts and studio reshufflings. Ninja Theory’s future is uncertain, and the fate of Arkane, another studio in the divestment plan, is up in the air.
Recent layoffs, along with the announcement of further job cuts totaling 3,200, indicate that Xbox’s restructuring is far from over. The lack of a clear post-reset vision for Xbox adds to the uncertainty felt within the organization.
Amidst these changes, major studios and IPs are being shifted to other Microsoft-owned publishers, raising questions about the intended outcome of the reset. The reshuffling includes placing Obsidian under Bethesda and giving Activision control of the Halo franchise and Rare.
“Nobody has yet deigned to outline a clear vision for what Xbox will actually look like after this reset”
These moves raise questions about the initial goals of the reset, particularly concerning the supposed streamlining of development oversight. The situation is further complicated by the acquisition of Activision Blizzard King, leading to speculation about the future direction of Xbox.
The lack of a coherent long-term strategy is further highlighted by Xbox’s recent move to publish Hideo Kojima’s upcoming game, Physint, amidst the ongoing reset. While individual decisions may seem logical, the overall direction of Xbox post-reset remains unclear.
In conclusion, while individual decisions may have merit, the lack of a cohesive vision for Xbox post-reset raises concerns about the company’s future direction. Microsoft will need to provide a clear and credible pitch for its next-gen system to regain consumer trust and navigate the challenges ahead.