Minecraft and Candy Crush Studios Get Direct Line to Xbox's New CEO Amid Massive Restructure

Microsoft's Xbox division is undergoing one of the most dramatic restructurings in its history, and at the center of that shake-up are two studios that most hardcore gamers might not immediately associate with Xbox's identity. CEO Asha Sharma, writing in a lengthy 'resetting XBOX' post on Xbox Wire, revealed that Mojang — creators of Minecraft — and King — the mobile giant behind Candy Crush Saga — will now report directly to her. The announcement comes alongside a plan to eliminate 3,200 Xbox jobs by the end of fiscal year 2027 and divest several other development studios from the portfolio.

Sharma framed the decision around scale and reach, describing both Mojang and King as studios that have evolved into platforms in their own right. 'These two studios have increasingly become platforms and are our largest by monthly active players,' she wrote. 'They bring critical geographic, demographic, and differentiation to XBOX.' That language signals a shift in how Xbox leadership is thinking about success — measured not in console units sold, but in the sheer volume of daily engaged players across every device and region.

The logic behind elevating Mojang is straightforward. Since Microsoft acquired the Swedish studio in 2014 for $2.5 billion, Minecraft has transformed into a cultural juggernaut, spawning spin-off games, merchandise, educational platforms, and most recently a Hollywood film that has performed impressively at the box office. King, acquired as part of Microsoft's $68.7 billion Activision Blizzard deal, brings a mobile-first audience that Xbox has historically struggled to reach, dominating app stores with Candy Crush for well over a decade.

The two studios are also actively collaborating on a new project: Minecraft Blast, currently in co-development and heading to Apple iOS. The partnership underscores the increasingly blurred lines between Mojang's sandbox world-building DNA and King's expertise in accessible, broadly appealing mobile game design. It also hints at the kind of cross-studio synergy that Sharma appears eager to encourage under a flatter, more direct management structure.

Speaking of structure, Sharma's post took direct aim at bureaucratic bloat within the organization. She noted that in some parts of the company, decisions pass through as many as 14 layers of management — a figure she described as incompatible with building great technology. Going forward, Xbox will cap management layers at no more than five, and push for three wherever feasible. Xbox Game Studios currently houses nine studios under its umbrella, though it remains unclear precisely which of those already report to Sharma and which are impacted by the broader restructure.