Xbox CEO Asha Sharma addressed staff during a town hall meeting today, seeking to reassure employees that the gaming division is rebounding after what she described as an “all time low,” following a wave of mass layoffs and studio closures tied to Microsoft’s sweeping business reset. Speaking on the company’s direction amid one of the most turbulent periods in its history, Sharma told staff that Xbox was “making the right decisions” and had “started to return to growth.”
The comments came as part of an effort to steady morale within a workforce reshaped by difficult restructuring. According to Windows Central, Sharma highlighted several upcoming titles she said have shown promise in early testing, pointing to strong starts for Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft: Forever.
A ‘Family of Devices’ for the Next Generation
One of the most significant reveals concerned Xbox’s next console generation. Sharma confirmed that what Microsoft internally calls “Gen-10″—also known as Project Helix—will arrive as a “family of devices,” echoing earlier rumors about the company’s plans beyond a single flagship machine.
“There is no one device that fits all,” Sharma explained, outlining an approach that balances traditional hardware with more portable options. She stressed the importance of delivering a “great console first” while also catering to players who want to game “on the go.” According to Sharma, Microsoft will manufacture some of these devices in-house and partner with outside companies for others.
The CEO stopped short of sharing specifics about the next console or its portable offerings. Both remain in development during a period complicated by surging demand for memory and components driven by artificial intelligence, alongside broader macroeconomic pressures that have pushed oil prices higher and rattled markets worldwide.
“After an all time low, we’ve started to return to growth.”
Asha Sharma, Xbox CEO
The Human Cost of the Reset
Sharma’s message of optimism arrives against a backdrop of significant workforce reductions. Microsoft CEO Satya Nadella has publicly praised Sharma for executing such deep and extensive cuts at Xbox, which have so far included 1,600 layoffs in July, close to 300 more in September, and additional job losses yet to come.
The restructuring also saw Microsoft close or divest a number of studios, including well-regarded developers Double Fine and Ninja Theory. Beyond personnel changes, Sharma oversaw a major reorganization of the Xbox business itself, which included Activision taking over ownership of the Halo franchise and Bethesda’s remit expanding to cover Obsidian.
The scale of the shake-up has fueled speculation that Sharma was streamlining Xbox specifically to make it more attractive to a prospective buyer. She recently insisted that Xbox is not for sale, though many observers remain skeptical—pointing back to her own earlier remark that “the plan’s the plan until it’s not the plan.”
Looking Ahead
As Microsoft navigates these challenges, attention now turns toward how the company will execute its next-generation hardware strategy and whether the projected return to growth materializes. With no concrete details on release windows for Project Helix or portable devices, staff and players alike are waiting to see if Sharma’s confident assessment holds true.
The gaming industry as a whole faces headwinds from rising borrowing costs after the US Federal Reserve recently raised rates, effects that have trickled through various market categories including entertainment. How Xbox balances its ambitious hardware ambitions against these economic realities will likely define the next chapter of Microsoft’s gaming strategy in the years to come.
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