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Several weeks after Xbox admitted it’s “overextended” with its business and it was reported that Microsoft would begin “major layoffs” in July, those cuts have now begun to hit the firm. In total, 4,800 roles are being eliminated, with 3,200 of them — roughly 67% — being Xbox game dev positions.
Amid the mass layoffs, Xbox CEO Asha Sharma has addressed the situation in a letter to staff that was also shared publicly, writing that the Xbox team’s reduction is a painful but ultimately necessary step in working to “reset” the brand.
Notably, Sharma also revealed that she’ll now have direct oversight over Minecraft developer Mojang Studios as well as Candy Crush maker King; both games have “increasingly become platforms and are our largest by monthly active players.” She also says that “They bring critical geographic, demographic, and differentiation to Xbox.”
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Though Sharma didn’t mention any specific plans for Mojang and King moving forward, a new report from Game File notes that according to a source familiar with Microsoft’s plans, the new CEO feels that Xbox and the company have “massively underinvested” in Minecraft, and wants to correct this.
Game File’s source explained that about six years ago, Minecraft’s size and popularity was on par with Roblox, the widely available free-to-play platform for community-made games and content. Since then, however, it’s estimated that Roblox has invested in its growth roughly five times as much as Microsoft has in Minecraft’s, and that Minecraft’s success has gone towards funding other Xbox projects instead of its own further success.
Minecraft, though still enjoyed by droves of players worldwide, has — along with countless other titles and platforms — been eclipsed by Roblox. In 2025, it grew so large that it surpassed the player engagement of Steam, PlayStation, and Fortnite combined, and was responsible for a whopping 67% of the gaming industry’s total growth last year.
A specific reason for why King and the Candy Crush team will now directly report to Sharma as well wasn’t reported, though I imagine it’s because Candy Crush, like Minecraft, has lost ground to Roblox’s rise to domination. After all, Roblox competes directly with the legendary mobile game since it’s available to play on iOS and Android.
I don’t play Candy Crush and can’t speak to how well it’s been maintained, though I’ve long held the view that Minecraft’s live-service support is rather poor, with meaningful additions to the sandbox survival game coming far too slowly. Perhaps with Sharma’s stewardship, that will change.
I’m confident one area of focus for the Xbox CEO will be reinforcing Minecraft’s more social aspects, given her own background developing social platforms like Messenger. It’s worth noting that this spring, Mojang announced that Minecraft: Java Edition will soon get a Friends List and peer-to-peer support, both of which are features that will make multiplayer easier and more convenient to engage with.
Do you believe Asha Sharma will successfully help Minecraft (and Candy Crush) grow and improve moving forward? Let me know what you think down below, and in our poll.
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