Wednesday, July 8, 2026
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Xbox CEO takes direct control of Minecraft to compete with Roblox amid massive layoffs

3 min read Editorial

Xbox is undergoing a significant restructuring that includes major workforce reductions and a shift in leadership hierarchy for its biggest franchises. Following reports that the division was “overextended,” Microsoft has begun eliminating 4,800 roles across the company. Of those cuts, 3,200 positions—roughly 67%—are within Xbox game development, marking one of the largest reductions in the studio’s history.

In a letter to staff shared publicly, Xbox CEO Asha Sharma described the changes as painful but necessary to “reset” the brand. A key part of this reset involves centralizing control over Microsoft’s most active gaming platforms. Sharma announced that she will now have direct oversight over Mojang Studios (Minecraft) and King (Candy Crush), both of which report directly to her moving forward.

Correcting years of underinvestment in Minecraft

The decision to bring Mojang under Sharma’s direct supervision appears driven by competitive pressure from Roblox. According to a report from Game File, sources familiar with Microsoft’s internal plans indicate that Sharma believes Xbox has “massively underinvested” in Minecraft over the last several years.

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Approximately six years ago, Minecraft and Roblox were comparable in size and popularity. Since then, however, Roblox is estimated to have invested roughly five times more into its platform’s growth than Microsoft has into Minecraft. Much of Minecraft’s revenue success was previously funneled into funding other Xbox projects rather than reinvesting in the sandbox game itself.

This investment gap has had visible consequences. In 2025, Roblox surpassed the combined player engagement of Steam, PlayStation, and Fortnite. It accounted for 67% of the gaming industry’s total growth last year, eclipsing traditional titles and even nipping at Netflix’s heels in terms of user attention.

What this means for you

For everyday Windows users who play Minecraft on PC, this leadership shift could signal changes to the game’s development pace. Critics have long noted that meaningful content updates for Minecraft have slowed down in recent years. With Sharma taking direct control, there is speculation that Microsoft may accelerate live-service support and feature additions.

Sharma’s background includes developing social platforms like Messenger, suggesting a potential focus on enhancing Minecraft’s social features. Mojang recently announced that Minecraft: Java Edition will soon receive a Friends List and peer-to-peer support improvements, which align with making multiplayer more accessible. Whether this trend continues under Sharma’s direct oversight remains to be seen.

The restructuring also affects King, the maker of Candy Crush. While no specific plans were detailed for the mobile giant, its inclusion in Sharma’s direct reporting line suggests Microsoft views it as a critical platform for geographic and demographic differentiation within the Xbox ecosystem, much like Minecraft.

Source: Windows Central

Over to you: Do you think direct oversight from the Xbox CEO will speed up Minecraft updates, or should Mojang remain independent?

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Windows & Microsoft news editor at 9to5Windows. Covering everything from Windows 11 builds to enterprise updates.

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