While the Xbox Games Showcase managed to reinvigorate the troops, the American company’s teams were unfortunately quickly brought back down to earth. In July, the company will launch a full-scale “reset” plan that will result in mass layoffs and strategic changes.
In a letter sent to staff, Asha Sharma, president of Xbox, addressed the challenges ahead. The group’s next console will be at the heart of this renewal. The executive explains that she will have to pay five times more for storage and memory components compared to 2024. Sharma therefore clarified that it will be necessary to revise the overall strategy for Project Helix.
“While the entire industry is facing a component shortage, we believe we have been hit harder than many of our competitors due to the choices we’ve made over the past five years. We are currently unable to produce as many consoles as gamers want to buy, and we need a new business model and hardware partnerships, while remaining committed to Project Helix.”
In addition, Jason Schreier has shared some interesting insights. The Bloomberg reporter revealed that a PS5 version of Gears of War: E-Day was in development until Asha Sharma changed course. Retailers were set to open pre-orders, and the news of the cancellation came as a surprise to many Xbox employees.
Furthermore, Halo: Campaign Evolved was indeed supposed to appear at the most recent State of Play, as evidenced by the recent trailer captured on the PS5 Pro. By removing the trailer from Sony’s event, Xbox may have strained its relationship with the Japanese company, at least according to sources close to the matter.
In any case, Microsoft is making major changes across all aspects of its gaming division, and this will have a significant impact on the entire group.
