Xbox Studio Shutdowns and Ad-Funded Subscriptions Likely After Asha Sharma’s Stark ‘Reset’ Warning, Analysts Say
ign.com Jun 13, 2026

Xbox Studio Shutdowns and Ad-Funded Subscriptions Likely After Asha Sharma’s Stark ‘Reset’ Warning, Analysts Say

AI-summarised brief · reviewed before publication

Microsoft's Xbox division is likely to undergo significant changes, including studio shutdowns and the introduction of ad-funded subscription models, following a memo from newly-installed CEO Asha Sharma warning of a corporate "reset". Sharma's memo highlighted the division's 3% profit margin, which is lower than the interest rate for corporations in the US. Analysts believe this will lead to layoffs, as the company seeks to capture a return on its investment in recent acquisitions, including ZeniMax Media and Activision Blizzard King.