Under the watchful eye of new boss Asha Sharma, Xbox is undergoing a major overhaul. The company has announced the closure of Compulsion Games, the studio behind South of Midnight, and is facing significant restructuring after Sharma sent out a memo warning of an “Xbox reset” ahead of expected layoffs.
In a bid to balance its vast library of popular franchises with new investments, Xbox acknowledged that it has overextended itself in recent years. Key changes include the pricing of the Xbox Game Pass and making exclusive titles like Gears of War: E-Day and Clockwork Revolution console-only.
In addition to studio cuts, executives Craig Duncan and Louise O’Connor are leaving their roles at Xbox. Duncan, previously head of Rare, took over his position in October 2024. Sharma’s reshuffle also brought in former colleagues from Microsoft’s CoreAI team.
As the tech landscape continues its high-stakes dance between competition and cooperation, these moves by Xbox underscore a broader trend in the industry: to stay ahead, companies must continually innovate while cutting costs—often at the expense of smaller studios and individuals.
