Microsoft Plans Major Xbox Layoffs, Studio Closures in July Restructuring

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Microsoft's Xbox division is undergoing a significant restructuring dubbed an 'Xbox reset,' according to an internal memo sent on June 10th by new CEO Asha Sharma and chief content officer Matt Booty. The company cited a 3 percent accountability margin, sharply higher console component costs due to a memory and storage shortage, and an overstretched studio system as key pressures. Layoffs are expected to be announced around July 6th, with reports indicating at least five studios could be closed and games such as Blade potentially canceled. Ninja Theory, the studio behind Hellblade, has already been confirmed for closure as part of the shake-up. Under Sharma's leadership, Xbox has also raised console prices, restructured Game Pass, and rebranded the division to XBOX.

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