Xbox CEO Asha Sharma addresses recent workforce reductions and planned studio departures, pointing to broader strategic choices as a factor in the cuts. Multiple outlets report that Sharma says Xbox “spread [itself] too thin” and that the business has suffered from neglecting its core operations, while also arguing that a stronger, healthier Xbox would have been better positioned to handle industry pressures. The reporting references layoffs of about 1,600 employees earlier in the week and a simultaneous plan to part ways with five studios. Outlets also describe Sharma’s comments as linked to the leadership and strategy associated with Phil Spencer, though at least one account says she does not name him directly. The coverage frames her remarks as an effort to explain both the scale and timing of the changes within Microsoft’s gaming division. Together, the sources portray Sharma’s message as centered on refocusing priorities and reducing commitments rather than attributing the restructuring solely to immediate external conditions.