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shikamaru317 10 hours ago
According to unnamed sources asking for anonymity due to not being allowed to speak to the press:
- Layoffs of unknown scale and division expected shortly after the close of the quarter on June 30th
- Xbox marketing budget will be significantly slashed, as well as funding for some other areas of the business
- Comes after Asha's earlier comments about the need to reset the business due to Xbox not being in a healthy spot when she took over
- In an email to employees Asha sent today which Bloomberg saw, Asha noted that Xbox's accountability margin will be just 3% when this fiscal year end later this month, and noted that in spite of spending over $20b in ongoing investments over the last 5 years (excluding the ABK acquisition), Xbox's annual revenue has declined by half a billion. "Going forward, this cannot continue" she noted. “We expanded our studio system when we needed a pipeline of content to meet multiple strategies across subscription, streaming and devices,” she wrote. “In the process, we have found ourselves over extended as we executed on changing strategies in a landscape of more readily available content. We are the fortunate stewards of industry-defining franchises that have enormous potential and player demand, but we have not adequately funded them to compete and win. At the same time, as we saw this past weekend at Showcase, a reliable pipeline of first- and third-party exclusives and new IP are critical to our success. We need to reassess the balance between these and our investment priorities for the next 5 years.”
