Xbox CEO Asha Sharma comments on recent sweeping layoffs and studio closures within Microsoft’s gaming division, framing the changes as a result of strategic missteps and a lack of focus. Multiple outlets report that Sharma says Xbox spread itself “too thin” and is struggling because it neglected its core business. While one account notes that she does not explicitly name Phil Spencer, both describe her as directing criticism toward the strategy associated with his leadership. The reported restructuring includes cuts across Microsoft’s gaming operations and the dropping of multiple studios, including Double Fine and Ninja Theory, according to the coverage. Overall, the articles present Sharma’s remarks as part of the internal explanation for the reductions, emphasizing that the company needs to concentrate more narrowly on its primary priorities. The reporting also underscores that the layoffs and studio closures are significant and wide-ranging within the Xbox ecosystem, with the leadership response tying the outcome to broader planning and execution decisions rather than to a single product or incident. No sources cited disagreement on the reported scope of the layoffs and studio exits.