Asha Sharma is steering Xbox through job cuts and major changes as Microsoft prepares Project Helix and deepens its work with game creators such as Hideo Kojima.
Asha Sharma is reshaping Xbox with deep job cuts, studio changes, and a new strategy built around Project Helix as Microsoft works to revive its gaming business.
The 38-year-old CEO of Microsoft’s gaming division took charge in February after roles in Microsoft’s CoreAI division and as chief operating officer at Instacart. She had no previous experience running a major video game business.
Her arrival came as Xbox faced weaker console sales than Sony and Nintendo, while Game Pass growth had stalled after reaching 34 million subscribers. In July, Sharma acknowledged that the gaming business was not in healthy shape.
Job Cuts Reshape Xbox
Sharma’s first year has brought significant restructuring. Around 20% of the Xbox workforce was cut during the summer, five studios were divested and another 270 jobs were eliminated in September.
The changes have also affected major franchises. Halo’s future was moved under Activision following the latest round of cuts.
The restructuring has fuelled speculation that Microsoft could eventually spin off its gaming division. Former PlayStation executive Shawn Layden has argued that Xbox needs to choose between being a platform company and a publisher.
Sharma has rejected the idea that Xbox is being prepared for a sale, saying the company will consider partnerships, its operating model and other changes needed to improve the business.
Microsoft CEO Satya Nadella has also said he expects the division to return to growth in the next fiscal year.
Xbox Wants to Reach More Players
Sharma’s strategy extends beyond selling consoles. Xbox currently reaches around 500 million monthly players, but the gaming division contributes only about 6% of Microsoft’s profits.
The company is pushing cloud gaming and broader access to reach players in markets including Africa, Latin America and South Asia. Sharma has repeatedly focused on the idea of giving players the ability to play wherever they are.
Minecraft is another priority, with Microsoft reinvesting in the franchise as it competes for the broader user-generated gaming market. The strategy includes projects such as Minecraft Dungeons II.
Xbox has also continued to expand its relationship with other platforms. When Sony announced plans to stop producing PlayStation discs in 2028, Xbox moved quickly with a disc-to-digital entitlement approach.
Kojima Deal Adds a New Dimension
One of Sharma’s more notable moves has been strengthening Xbox’s relationship with Japanese game creator Hideo Kojima.
Xbox signed Kojima Productions for the stealth game Physint, with the agreement also including film and television rights. The deal came after Sony and Kojima ended their previous relationship.
Sharma has described the relationship between competition and collaboration as capable of coexisting, reflecting Xbox’s broader effort to work with creators and platforms beyond traditional console boundaries.
Project Helix Shapes Xbox’s Next Console
At the centre of Xbox’s longer-term strategy is Project Helix, the company’s next-generation console.
The project is being developed around more than traditional console gaming. Sharma’s vision places greater emphasis on creation, reflecting the growing overlap between people who play games and those who create content and experiences within them.
That approach comes as Xbox tries to redefine its position in an industry where hardware, cloud gaming, subscriptions and software increasingly overlap.
For Sharma, the immediate challenge is managing a painful restructuring while convincing players, developers and investors that the changes are building a stronger Xbox rather than simply shrinking the business.
Project Helix will ultimately be one of the clearest tests of that strategy.
Read more news and follow us on Instagram
Source: Business Connect
