Xbox Leadership Faces Criticism Amid Major Restructuring and Layoffs
MS’s gaming division is undergoing a substantial restructuring, with ongoing layoffs expected to affect approximately 3,200 positions. Against this backdrop, Xbox CEO Asha Sharma’s recent trip to Japan has drawn criticism from a former studio executive within the company.
Sharma Visits Kojima Productions
Sharma visited Kojima Productions in Tokyo to meet with Hideo Kojima and his team. The visit focused on OD, Physint, and future projects, with photos from the meeting shared publicly on September 14, 2026.
The images followed the announcement that MS would publish Physint after Sony dropped the project. Given Xbox’s current restructuring and workforce reductions, the timing of the highly publicized visit prompted a sharp response from a veteran developer.
Former World’s Edge Executive Criticizes the Timing
Shannon Loftis, the former studio head of Age of Empires developer World’s Edge, criticized Sharma in a Threads post. Referring to Sharma’s recent statement that “clarity is kindness,” Loftis wrote: “Super funny that Asha Sharma said ‘Clarity is kindness’ to the WSJ last week then did a half layoff today. I guess Damocles’ Sword is a form of clarity, what do I know?”
Loftis was referring to a Wall Street Journal profile that discussed Sharma’s approach to redundancies and internal disruption. Sharma reportedly favors communicating difficult decisions clearly and directly. While straightforward communication can prevent uncertainty, that philosophy may provide little comfort to employees whose jobs are at risk.
Layoffs Reportedly Affect World’s Edge
Xbox’s latest restructuring reportedly reached World’s Edge this week, with details of the layoffs emerging through social media. Loftis, who left the studio in 2022, also expressed support for her former colleagues on LinkedIn, saying she was “crushed” by the news.
“I do not know of everyone that has been impacted by today’s news, but I can guarantee these people know how to ship games and make gamers happy,” Loftis said.
Her frustration was even more explicit on Threads, where she added: “Please, Asha, publish more ‘cool’ photos from your Japan Kojima-maxxing trip. That’s the kind of leadership game developers need.”
Xbox’s Strategy Remains Under Scrutiny
Employees who have lost their jobs, or whose roles and teams have changed significantly in recent months, may view Sharma’s heavily promoted visit with Kojima as poorly timed. Publicly highlighting a new publishing commitment while implementing widespread redundancies creates a stark contrast between Xbox’s strategic investments and its internal cost-cutting measures.
However, Sharma’s role is ultimately to improve Xbox’s position rather than win universal approval. Securing a Kojima project has generated attention for the company, but it remains unclear whether the partnership will produce a more substantial improvement in MS’s gaming business.