Xbox is also planning to significantly slash budgets for marketing and some other areas of business - Bloomberg News

Microsoft’s Xbox division is reportedly preparing to significantly reduce spending on marketing and other business areas, according to a Bloomberg News report. The move is part of broader cost-cutting measures within the division, which has faced challenges in maintaining profitability amid shifting consumer preferences and increased competition in the gaming sector. The budget reductions are expected to impact several non-core operations, though key development and operational functions are unlikely to be affected. The decision reflects a strategic shift to prioritize efficiency and resource allocation in response to evolving market dynamics. Analysts suggest that the move could help the division streamline operations and improve long-term financial performance. However, the extent of the impact on Xbox’s market position and revenue growth remains to be seen. The company has not officially commented on the report.