Xbox leaders admit brand is in crisis

Xbox leaders have revealed significant internal challenges, acknowledging a "hard truth" that the brand is underperforming. New Microsoft Gaming CEO Asha Sharma and Studios chief Matt Booty detailed a "brutal self-assessment" indicating a crisis within the division, marked by a mere 3% profit margin. This underperformance is attributed to over $69 billion spent on acquisitions like Activision and $20 billion on other investments, despite overall gaming revenues declining. The executives admitted to underfunding key franchises and facing hardware supply chain issues, leading to a strategic "Xbox reset" and potential layoffs.