Xbox more negatively affected by component crisis due to choices made by the company, Asha Sharma said.
Microsoft’s Xbox is reportedly planning “significant” layoffs next month as the new CEO Asha Sharma attempts to tackle the gaming division’s declining financial standing.
Bloomberg reported that the scale of the layoffs – expected to be announced shortly after the close of Microsoft’s fiscal year on 30 June – is not known. Xbox is also expected to make major cuts to budget, marketing and other areas, sources told the publication.
Yesterday’s (10 June) report shortly followed a memo Sharma and Xbox’s chief content officer Matt Booty sent to employees titled “Xbox Reset”, which outlines some of the division’s spending-related issues.
Over the past five years, Microsoft poured more than $20bn into gaming content, platform and hardware subsidies, Sharma said, but saw revenue declining by nearly $500m during the time.
