Xbox Live outage affects users; CEO Asha Sharma under scrutiny

Xbox CEO Asha Sharma faced scrutiny amid an Xbox Live outage affecting license verification and access to downloaded games.

Sharma announced layoffs of 3,200 employees on July 6, 2026, as part of an AI-driven restructuring under Microsoft.

Users in the US reported issues from late July 26 into July 27, impacting Account & Profile, Store & Subscriptions, and Apps & Mobile services.

Online criticism targeted Sharma over layoffs, with claims that jobs were being replaced by workers on H-1B visas.

Sharma became Xbox CEO in February 2026, succeeding Phil Spencer.