Xbox grows again after layoffs and studio closures: next generation will be a ‘family of devices’
According to a report, Xbox told staff it is growing again after a low point, while Microsoft works on a next-gen Xbox ‘family of devices’.
- The next Xbox generation is described in the report as a ‘family of devices’, with a focus on a strong console and options for players who want to play on the go.
- Microsoft would partly build its own hardware and partly work with partners on additional devices; the source also mentions 1,600 layoffs, though the context is not fully visible.
What happened
According to Gamespot, citing a Windows Central report, Xbox held an internal town hall for employees after a period of major changes within Microsoft’s gaming division. The piece says Xbox is now showing growth again after an earlier low point, and that leadership believes it is making “the right decisions.”
The same report names several first-party titles that the source says had a strong start, including Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft: Forever. However, those titles and the exact wording are only presented through the news report, not through a public transcript.
The report also says Xbox’s next hardware strategy, internally referred to as Gen-10 and also called Project Helix, will not revolve around a single console. Instead, the source describes a family of devices, with Microsoft reportedly aiming to deliver a “great console first” while also offering options for players who are “on the go.”
The report adds that Microsoft will manufacture some devices in that next Xbox family itself and work with partners on other models. It also says Satya Nadella praised leadership for deep and extensive changes, while the source references layoffs and studio closures as part of a broader reset.
Timeline
2026-10-06: Gamespot publishes a report on an internal Xbox town hall, based on information from Windows Central.
2026-10-06: The report discusses an earlier phase of layoffs and studio closures, including a cited figure of 1,600 layoffs in the provided passage.
2026-10-06: The source says Xbox is seeing growth again and is approaching the next hardware generation as a family of devices.
Background
The reported shift fits into a broader restructuring of Microsoft’s gaming division, where layoffs and studio closures are described as part of a reset. The source places those changes alongside comments about growth, but does not specify which internal metric or measure is meant by “all time low.”
The naming in the report is also partly unclear. The source mentions Asha Sharma in a leadership role at Xbox, but that is not confirmed in the provided context and may be an error or misattribution. It is also unclear whether the game titles mentioned are official projects or placeholders in the reporting.