According to BloombergXbox is expected to have significant cuts next month. The publication says:
“‘The cuts, the exact extent of which is not yet clear, are expected shortly after Microsoft closes its fiscal year on June 30,” said the people, who spoke on condition of anonymity because they were not authorized to speak to the press. Xbox also plans to significantly cut budgets for marketing and some other areas of the business..”
However, Bloomberg also notes that Xbox declined to comment, which is expected.
It’s no secret that the Xbox isn’t doing particularly well. In fact, the company was quite open about it. Xbox CEO Asha Sharma recently said that business is not healthy right now, and unfortunately, layoffs often become part of this reality.
We get a few more details directly from Xbox, which I or someone else will cover in more detail separately, but here’s something I believe is worth mentioning. The company just published a blog post, “The Next 100 Days: The XBOX Reset,” on Xbox WireHere’s what was pretty predictable about the state of the business:
“We will end this fiscal year with a low year-over-year reporting margin of approximately 3%. Excluding Activision Blizzard King, over the past five years we’ve spent more than $20 billion on ongoing investments in our content, platform and hardware subsidies, but our annual revenue has declined by nearly half a billion over that period. Come on, this can’t go on.”
Xbox is in a tough spot, and in many ways it’s something it’s created for itself. Years of brand dilution, inconsistent strategy and often short-sighted decisions have left the company struggling to find its footing in a fast-paced industry.
However, I really hope that those affected by any potential layoffs next month will be able to get back on their feet. I also hope that whatever Xbox has outlined as part of its eventual reset is enough to get the business back on track, both financially and in the eyes of fans.
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