Xbox layoffs show it was too big not to fail

Polygon · 6 min read · studios

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Xbox CEO Asha Sharma acknowledged the division's business is unhealthy, operating at margins 3–10x lower than comparable publishers. The company entered this generation with a smaller install base and higher costs, made unsuccessful bets on Game Pass and multi-platform expansion, then doubled down with more investment. The resulting 3,200 layoffs and studio departures are the consequence.