Microsoft announces major Xbox restructuring and billion‑user ambition

Microsoft announced a major restructuring of its Xbox division on Monday, describing it as “the most significant restructure in Xbox history.” The announcement, made by Xbox CEO Asha Sharma, detailed a series of layoffs that will reduce the size of the team responsible for the platform’s development and operations. The cuts come after several years of substantial investment in Xbox, during which the company has faced criticism for limited returns on its spending.

In the same memo, Sharma expressed a forward‑looking goal for the brand, stating her ambition for Xbox to become “one of the few companies that entertains more than a billion people each day and gives everyone the opportunity to create and connect.” The restructuring aims to streamline resources while expanding the platform’s reach, positioning Xbox to target a broader audience despite the broader challenges currently affecting the video‑game industry.