Xbox giveaway and internal 'Reset' letter expose supply and funding tensions

Microsoft held its annual summer showcase at the Los Angeles Academy Museum of Motion Pictures, where new Xbox CEO Asha Sharma announced that fans with special badges at the event—all of whom paid their own way to Los Angeles and surely own an Xbox—will receive a free limited edition Xbox Series X console.

Days later, an open letter to Xbox employees titled "Xbox Reset" warned the business is "currently unable to make as many consoles as players want to buy," and said the company "over extended" in its studio acquisition spree. The letter’s casual sign-off, "Asha and Matt," contrasts with its stark message; the piece asserts, "This month was the time for Asha's first big giveaway.

Next month it will be time for Asha's first big layoffs." The letter also calls out a "hardware component crisis" and highlights the tension of handing out consoles while citing supply shortfalls.

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