Xbox Reset Stretches Past 100 Days With No Clear End in Sight

Xbox's promised reset has spiraled into an open-ended restructuring with no defined endpoint. CEO Asha Sharma originally framed the reorganisation as a "hundred days" initiative, but the cuts have continued far beyond that window with no clear conclusion.

The cuts have been severe. Hundreds of layoffs occurred during the initial reset period, followed by another 268 job cuts this week alone. Microsoft announced plans to slash 3,200 jobs across Xbox in total, meaning hundreds more reductions are still to come. Studios like Ninja Theory face probable shutdown after failing to find a buyer, while other divestments remain uncertain.

The core problem is structural: nobody at Xbox has outlined a clear vision for what the division will look like after the reset concludes. The latest studio reshuffle moved Obsidian under Bethesda and transferred Halo to Activision's oversight, effectively repositioning major studios and franchises outside Xbox Game Studios' direct control. This raises questions about the stated goal of removing management layers to enable more direct development oversight.

What remains in Xbox Game Studios includes support studios for Activision's Halo games, the Forza developers (newly merged Playground Games and Turn 10), The Coalition (Gears of War), and InXile Entertainment (Clockwork Revolution). The logic behind keeping these studios separate from the Bethesda and Activision restructure is unclear.

The incoherence extends to recent commitments. While cutting costs aggressively, Xbox secured publishing rights to Hideo Kojima's next game after Sony withdrew from their partnership. That project, Physint, likely won't release until 2030 or later, representing a major investment during a period focused on efficiency.

Minecraft, Microsoft's dominant gaming property, sits directly under the Xbox umbrella but operates on a separate trajectory from the rest of the division's strategy. How it integrates into Xbox's future remains undefined.

The fundamental issue: a reset is supposed to be a contained disruption followed by stability and clarity. Xbox staff currently face ongoing redundancy threats with no certainty about the division's direction or when the cuts will end.