• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Gameranx

Gameranx

Video Game News, Lists & Guides

  • News
  • Features
  • Platforms
    • Xbox Series X
    • PS5
    • Nintendo
  • Videos
  • Upcoming Games
  • Guides

Rumor: Xbox Reset Is Happening Because Of Microsoft’s AI Push, Xbox Game Studios Was Their “Vestigial Leg”

September 28, 2026 by Ryan Parreno

It also means Asha has been quietly managing an impossible mandate of her own.

Jez Corden has shared some fascinating insight on how the XBOX reset looks like within Microsoft.

In the latest episode of the XBOX Two podcast, Jez explained that Microsoft pay scaling system has made it prohibitively expensive for them to retain employees. In particular, they’re forced to pay through the roof for AI developers, and that’s made other parts of the company, such as Xbox, unsustainable.

Jez then said this:

…So basically, Activision is a purpose-built gaming operation and Microsoft isn’t. And that is really the crux of why a lot of this a lot of these movements are happening.

The same is true for Bethesda. You know, Bethesda’s like a purpose-built gaming company. Xbox Game Studios was always kind of like a vestigial limb within Microsoft’s wider org…

Because of this division, Jez says that it’s possible that the three remaining XBOX Game Studios (Playground Games, The Coalition, InXile) will also be folded into Bethesda or Activision, or go independent themselves.

If these rumors are true, Asha Sharma has been quietly enduring her own impossible mandate from higher up.

Share this post:

FacebookTwitterLinkedInPinterest

Recent Videos

10 Developers That Warned Us, But Nobody Listened

10 Developers That Warned Us, But Nobody Listened

25 UPCOMING Games We're MOST EXCITED ABOUT

25 UPCOMING Games We're MOST EXCITED ABOUT

GTA6 - NEW THINGS WE FOUND & MORE

GTA6 - NEW THINGS WE FOUND & MORE

The Legend of Zelda: Ocarina of Time Remake - Before You Buy

The Legend of Zelda: Ocarina of Time Remake - Before You Buy

Godzilla: Destroy All Monsters Melee - Before You Buy

Godzilla: Destroy All Monsters Melee - Before You Buy

20 Game of The Year Contenders of 2026

20 Game of The Year Contenders of 2026

20 Flaws GTA 6 Is Trying To Fix

20 Flaws GTA 6 Is Trying To Fix

20 Video Game Trends That Are MAKING A COMEBACK

20 Video Game Trends That Are MAKING A COMEBACK

20 Legendary Games That AGED LIKE MILK

20 Legendary Games That AGED LIKE MILK

Category: UpdatesTag: Nintendo Switch, PC, PS5, Switch 2, Xbox, Xbox Game Studios, Xbox Series X/S

Sidebar

Recent Posts

  • Rumor: GTA 6 Pre-Load Data Suggests PS5 Pro Has Additional Ray-Tracing
  • Fans Demands Sony Investigate PSN Accounts Being Sold In Black Market After CFO Lin Tao Apologizes For Cyberattacks
  • Santa Monica Studio Delays God Of War Laufey To May 2027
  • Rumor: GTA 6 Will Have PSSR and Ray Tracing On PS5 Pro
  • Sony Offers Their Own Customers $ 400 If They Trade In Their PS5 Via 3rd Party Reseller Back Market

Copyright © 2026 · Gameranx · All Rights Reserved · Powered by Mai Theme