Asha Sharma, the newly appointed Xbox chief executive, has publicly criticised her predecessor Phil Spencer's approach to business strategy, contending that the company diluted its effectiveness by attempting too many simultaneous initiatives. Sharma attributed the current challenges facing Xbox to this dispersed resource allocation, which she argues prevented the company from adequately strengthening its primary operations.

In response to what Sharma describes as the business operating in an unhealthy state, Xbox leadership has announced substantial restructuring including workforce reductions of 3,200 employees and the separation of four studios from the organisation. This reorganisation reflects a deliberate strategic reorientation toward conventional console-based operations and a reassessment of expansive programmes, signalling a notable departure from Spencer's previous strategic direction.