Xbox Goes on a Reset: Cuts, Studio Moves, and a Game Pass Reassessment

Microsoft’s Xbox unit is undergoing a strategic reset led by CEO Asha Sharma, including mass layoffs and selling off studios, after bets like Xbox Game Pass did not pay off; Game Pass is reportedly around 30 million subscribers (down from 34 million in 2024), with a price hike and changes such as not including new Call of Duty games at launch, prompting a shift to focus on higher-priority projects and selective exclusives; no announced first-party Xbox games have been canceled as part of the reset.