According to analyst Joost van Dreunen, the changes at Xbox are part of Sharma's task to streamline the structure within her first 100 days. This is "the job she was hired for, essentially." He speaks of a shift towards strict austerity.
The gaming market is shifting towards cost reduction and process simplification instead of investing in major hits.
Xbox co-founder Seamus Blackley previously called Sharma a "palliative manager" who is gradually winding down the brand.
Sharma acknowledged that the financial position of Microsoft's gaming division remains weak.
Microsoft CEO Satya Nadella stated that after 25 years of support, Xbox must be self-sufficient. This leads to the sale or closure of unprofitable studios.