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Matt Booty, who just got promoted to Executive Vice President and Chief Content Officer at Xbox, has signaled in a memo that the recent upheaval at Xbox may not lead to any layoffs at the company’s collection of nearly 40 game development studios.
He said in his memo, “To be clear, there are no organizational changes underway for our studios.”
The new Xbox CEO, Asha Sharma, comes from a background of AI, prompting fears by some that further investments into the technology at Microsoft’s studios could result in layoffs. That isn’t happening, at least not for now, but the Xbox Game Studios family has faced challenging times of late. Microsoft made deep cuts to the Xbox teams in July 2025, leading to many layoffs and canceled games, along with the closure of Perfect Dark reboot studio The Initiative.
Industry analyst Dr. Serkan Toto believes Microsoft will “run through their Xbox business with a bulldozer this year” in the wake of Sharma taking over as the new CEO. “For the same of Xbox employees, I hope I am wrong,” he said.
Xbox co-founder Seamus Blackley, meanwhile, predicted the end of Xbox and that Sharma will serve a role more akin to a “palliative care doctor
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