This is an important email I sent today to all employees at XBOX:
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 approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management. I recognize that a year-long restructuring creates additional challenges. Unfortunately, it is not possible to make all the necessary changes in a single day, and I wanted to be direct about the scale.
I know this is painful. These changes will directly affect people who have poured their creativity into building XBOX. Many joined us through acquisitions, while others were recruited here, or sought us out because they loved this industry and loved XBOX. Today's decisions do not reflect their talent or dedication.
Our business today is not healthy. We are operating at margins that are 3–10x lower than comparable platform and publishing businesses. We entered Gen 9 with a smaller install base and a higher cost structure. To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. While those businesses have created meaningful value, they did not grow at the pace we expected. As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history. We must reset XBOX.
First, we will reset our content portfolio.
Since 2018, we have aggressively expanded our studio portfolio while the number of games created each month across the industry now outpaces the last ten years combined. We now find ourselves competing not only with the largest publishers, but also with smaller independent studios. It is neither possible nor desirable to own every great independent studio. We have also learned that we are not the best home for every type of studio; in a typical year, we lost 64 cents for every dollar we invested. As we reset XBOX, we will help independent creators succeed by providing open development tools and audiences to realize their vision.
Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games. Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.
We are also making reductions across other units, and in some cases, shifting investment to focus on higher priority projects. These changes vary in size across Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios. None of our first party publicly announced games or projects are being cancelled as part of these reductions.
In addition, Mojang and King will now report directly to me. These two studios have increasingly become platforms and are our largest by monthly active players. They bring critical geographic, demographic, and differentiation to XBOX.
Second, we will reset our platform.
We know that great technology gets better when it gets simpler, not bigger. Today, in some parts of the company, work passes through as many as 14 layers of management. Our platform teams are 40% larger than they were at the start of this generation, even as our player base and playtime have declined. That complexity has slowed decisions, blurred accountability, and made it harder to deliver for players. As we reset XBOX, we will simplify.
We will reduce management layers to no more than 5, and where possible, 3. We will deliver success through a flatter organization that is built around makers (individual contributors focused on building), player-coaches (leaders who remain deeply involved in the work while developing their teams), and directly responsible individuals (DRIs) who own key decisions and outcomes. And we will streamline how we work across our tools, with a cleaner code base, shared services, and 50% reduced vendor spend.
Third, we are resetting how we operate.
As XBOX grew our headcount, we became more fragmented. Teams, studios, and functions often operate independently, and it became harder to work towards a shared goal, make the right tradeoffs, and get things done.
For the first time, we are establishing a Chief Operating Officer with end-to-end P&L responsibility across content, hardware, platform, and services. Helen Chiang has been promoted to this role and will report directly to me. Over nearly two decades at XBOX, Helen has helped build some of our most important businesses, from XBOX Live to leading Mojang and the Minecraft franchise. She will bring our businesses together under one operating model, making sure we make clear investment decisions, learn from our successes and failures, and hold ourselves accountable for results.
Thank you, Dave McCarthy, who is retiring after 17 years with XBOX. Dave has played a defining role in building the platform that millions of players rely on every day and has been a trusted partner through many of the biggest moments in XBOX's history. We wish him all the best.
These changes are about a bigger future for XBOX, not a smaller one. The next decade of gaming will be larger, more global, and more creative than anything we've seen before. This year, we'll invest as much in XBOX as we ever have, but we'll invest with greater focus, greater discipline, and greater clarity, all in service of making XBOX where the world plays and creates.
I want XBOX to be one of the few companies that entertains more than a billion people each day and gives everyone the opportunity to create and connect. I know we can achieve this goal. XBOX has many of the most beloved franchises in entertainment history, talented studios around the world, and we will return to growth in 2027.
History is full of companies that mistake longevity for inevitability. We will not be one of them.
Asha
मैं सभी सनातनी मराठी बंधुओं से आग्रह करना चाहता हूँ कि @prasadvedpathak जी वही व्यक्ति हैं जिन्होंने सार्वजनिक रूप से भगवान गणपति बप्पा के प्रति अपनी आस्था पर प्रश्न खड़े किए हैं। मराठी और जैन समाज सदियों से आपसी सम्मान, सौहार्द और भाईचारे के साथ रहते आए हैं। दोनों समाजों ने एक-दूसरे की परंपराओं, आस्थाओं और संस्कृति का हमेशा सम्मान किया है। किसी एक व्यक्ति की नास्तिक सोच या विवादित बयानबाजी के कारण दो समाजों के बीच अविश्वास और दूरी पैदा करने का प्रयास दुर्भाग्यपूर्ण है और रही दूसरी बात, सफेद लाइन किसी व्यक्ति, धर्म या समाज के खिलाफ नहीं है। गर्मी से बचाव और भवनों को ठंडा रखने के लिए मंदिरों सहित अनेक सामाजिक एवं सार्वजनिक स्थलों पर सफेद पेंट किया जाता है। इसका किसी धर्म, समुदाय या आस्था से कोई संबंध नहीं है। अनावश्यक विवाद खड़ा करने के बजाय तथ्यों को समझना और सामाजिक सौहार्द बनाए रखना हम सभी की जिम्मेदारी है।
Why India needs an ‘Inflation Linked Salary Revision Act’, I argue in Parliament.
Between FY18 and FY26, real wages for salaried Indians fell by 16% because pay hike did not keep pace with rising inflation. That is why in Parliament I raised that a mandatory wage indexation formula is the need of the hour.
Government employees get protection through Dearness Allowance and periodic Pay Commissions. But 85% of India’s formal workforce has zero statutory inflation protection. They are at the mercy of employer discretion and their own negotiation power to get a pay hike.
Other economies already protect workers through automatic indexation.
• The US has COLA with automatic revisions
• Germany revises wages every 18–24 months
• Japan follows the annual Shunto system
• Belgium mandates automatic quarterly indexation
India needs statutory inflation protection, a minimum wage increase linked to inflation.
Inflation should not be India’s silent pay cut
Legalise Virtual Digital Assets (like Crypto, Stablecoin) in India. Don’t drive them offshore.
India taxes VDAs (virtual digital asset) like they are legal. But regulate it like they are illegal.
India taxes cryptocurrency at 30% Capital Gain Tax + 1% TDS; yet offers no legal recognition, no investor protection, no dedicated AML (anti-money laundering) framework.
The result is:
• 12 crore Indians invest via overseas platforms
• ₹4.8 lakh crore in VDA trading moved offshore
• 73% of India's trading volume shifted to foreign exchanges
• 180 Indian crypto startups relocated abroad
The answer is : compliance in India. Give VDAs clear asset class status in India.
A clear domestic regulatory sandbox, with strong AML guardrails can bring activity back onshore, protect investors, improve compliance and add ₹15,000–20,000 crore in annual tax revenue.
Let us not fear innovation, let us regulate it.
Prohibition is not protection, Regulation is protection.
In Parliament, I explained why India must put land & property records on BLOCKCHAIN.
Land records in India are in utter chaos. Ordinary citizens are made to run from pillar to post at registrar offices, while dalals and middlemen capture the system. Circle rates are exploited to fuel cash deals, property tax leakages continue, fake documents and encroachments multiply, and disputes over title never end.
The numbers tell the story:
• 66% of all India’s civil disputes are land disputes.
• 45% of properties lack a clear title.
• 48% are already under dispute.
• India ranks 133 out of 190 in property registration efficiency.
• Even a simple property sale can take 2 to 6 months. When disputes arise, civil courts take 7 years on average to resolve them.
• And 6.2 crore property documents are still pending digitisation.
That is why I argued in Parliament for a National Blockchain Property Register. Time stamped, tamper proof, fully transparent. It can make title verification instant, and ensure every sale, mutation and inheritance is recorded cleanly and traceably in realtime.
Countries like Sweden, Georgia and the UAE have shown what is possible. Transactions can finish in minutes, and dispute rates fall sharply.
India must move from chaos to clarity. From a land record system that creates obstacles to one that prevents them.
History is not a straight road behind us; it is a spiral we keep walking, carrying old lessons in new clothes. Every age believed it stood at the edge of final truth, yet time gently proved otherwise. Empires rose thinking they were permanent, technologies arrived claiming to solve everything, and people repeated the same fears, hopes, and mistakes with different names. The future, then, is not a distant land—it is history waiting to be written by our daily choices. What changes is not human nature, but our tools and our speed. If history teaches us anything, it is this: progress without wisdom loops back into ruin, and wisdom without courage never moves forward. The future will belong not to those who predict it best, but to those who remember deeply, act consciously, and refuse to confuse advancement with meaning.