Xbox turmoil continues with a studio closure and executive departures

What happened

According to The Verge’s source item, Xbox turmoil continues with a studio closure and executive departures, Last week, Xbox boss Asha Sharma sent a memo warning of an Xbox “reset” ahead of expected layoffs, and today, Kotaku reported that Xbox plans to shut down Compulsion Games, the studio behind South of Midnight. Since taking over in February, Sharma has made some big decisions, including cutting the price of Xbox Game Pass […] Last week, Xbox boss Asha Sharma sent a memo warning of an Xbox “reset” ahead of expected layoffs, and today, Kotaku reported that Xbox plans to shut down Compulsion Games, the studio behind South of Midnight . Since taking over in February, Sharma has made some big decisions, including cutting the price of Xbox Game Pass and making Gears of War: E-Day and Clockwork Revolution Xbox console exclusives . But in their “reset” memo , Sharma and chief content officer Matt Booty discussed many challenges facing the Xbox business, including that it has “over extended”

Context

The development sits in VINI’s Technology file for readers following technology, science, product policy, markets, infrastructure, and the public consequences of innovation. The original report is linked so readers can check the source account, follow later updates, and compare new coverage against the first published record. The source item is dated 2026-06-15T17:08:35+00:00.

What to watch

Open questions include whether primary sources issue follow-up statements, whether local or market impacts become clearer, and whether additional reporting changes the timeline or adds material context.

Source

Primary source: Xbox turmoil continues with a studio closure and executive departures via The Verge. VINI cites and links the source; it does not reproduce the publisher’s full article text without rights clearance.