Asha Sharma Confirms Xbox First-Party Titles Survive Reset and Layoffs
After announcing the “Xbox Big Reset” on July 6, 2026, company CEO Asha Sharma has said that despite 3,200 layoffs across its gaming division, there will be no cancellations of the first-party games and projects announced.
Key Takeaways
- Xbox CEO Asha Sharma confirmed that despite 3,200 layoffs, no publicly announced first-party games have been canceled.
- Four major development studios, including Ninja Theory and Double Fine, are being sold as part of the strategic reset.
- Major upcoming titles like State of Decay 3 and Marvel’s Blade remain safely in active development.
As part of the 3,200 layoffs planned for the 2027 Fiscal Year, Xbox is specifically selling off Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs, while Arkane Studios enters “required consultation.”
Despite this “reset,” Xbox CEO Asha Sharma has said on X that “none of our first-party publicly announced games or projects is being cancelled as part of these reductions.”
👉 READ ALSO: Microsoft Announces 3,200 Layoffs Across Xbox
What does the Xbox reset mean for upcoming games?
Asha Sharma has confirmed that first-party projects and games already announced will not be cancelled. Projects like State of Decay 3, Marvel’s Blade, and others are proceeding with their planned development, reassuring players that the immediate release pipeline is secure.
While the long-term internal development capacity is being reduced through the sale of key studios, Microsoft appears committed to fulfilling its immediate roadmap obligations for Xbox Series X|S and PC, maintaining the software output promised at recent showcases.
This is an important email I sent today to all employees at XBOX:
— ASHA (@asha_shar) July 6, 2026
Team,
We are beginning the most significant restructure in XBOX history. After careful consideration, I've made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include…
Which studios are affected by the Microsoft sell-offs?
Several major development houses are directly affected by the Microsoft sell-offs. Compulsion Games (We Happy Few), Double Fine Productions (Psychonauts 2), Ninja Theory (Senua’s Saga: Hellblade II), and Undead Labs (State of Decay 3) are being sold.
Additionally, Arkane Studios, known for Dishonored and Redfall, is currently entering a required consultation period.
While the corporate ownership of these studios is changing, specific high-profile games tied to these teams, particularly those already announced, are designated as “safe” and continuing development.
Is Xbox still a stable platform for players?
The massive internal Xbox reset and sell-off of major studios clearly signal a strategic pivot by Microsoft, likely emphasizing a leaner organization focused on safe bets and established IPs rather than broad diversification.
However, the confirmation from leadership that the announced first-party pipeline for Xbox Series X|S and PC is not facing cancellations is crucial for current hardware owners.
Fueled by a passion for gaming and the ever-evolving world of gaming news, Daniel loves connecting with seasoned and new players to bring games to life on the page, exploring their narratives and gaming trends. A self-published fiction and fantasy author, Daniel has nearly 20 years of experience writing gaming news and a love for storytelling that drives his enthusiasm to deliver breaking news, in-depth analysis, and industry innovations. You will find him in-game as "Windfell."
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