Reports indicate that Xbox is preparing for significant company-wide layoffs expected at the end of June 2026 as part of a restructuring initiative led by new CEO Asha Sharma. The exact number of job losses and affected departments are currently uncertain. Shuhei Yoshida, a former executive at Sony Interactive Entertainment, suggested in a tweet that "Xbox will dissolve into Windows," hinting at a potential structural transformation within the company. Xbox has been experiencing declining hardware sales and has started porting flagship titles to the PlayStation 5. Additionally, there are rumors that the next generation of Xbox, referred to as Project Helix, may utilize Windows instead of the traditional Xbox operating system.