In an Xbox Wire post (and email to team Xbox), Asha Sharma has revealed plans for what she is calling “Resetting Xbox” with more to come throughout the year.
The tone is set as it’s explained that Xbox is “operating at margins that are 3-10x lower than comparable platform and publishing businesses” and for every dollar invested into Xbox, only 32 cents is made.
Studio Changes
- Compulsion Games & Double Fine Productions:
Will “Transition to independent studios with their IP, catalogue, and runway for their next games.”
- Ninja Theory & Undead Labs
“…Have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3.”
- Arkane
“Management is beginning required consultation with its Works Council to review potential strategic options”
Layoffs and Restructuring
Asha is reducing the headcount at Xbox by about 20%, or 3,200 people. 1,600 happening now, with the rest to happen throughout the year. The reduction is impacting the platform team, multiple studios and various teams through Xbox and is no doubt a huge weight on all.
Alongside the reduction in headcount, an organisational restructure is occurring to reduce the levels of management throughout, with no more than five levels in place, replacing the current up to 14 levels and to have studios focused on the bigger franchises.
There are many other things covered including Mojang and King reporting directly to Asha, a new Chief Operating Officer and talk of the technology stack, if you are interested in the full info, the whole email is available on Xbox Wire as a post.
We will be sharing out thoughts on 1-Up Checkpoint later in the week.
