In 2007, Microsoft’s Xbox 360 consoles started dying — overheating until three lights on the front blinked red, a defect gamers came to call the “red ring of death.”

In an email to employees, Xbox CEO Asha Sharma said: "Our business today is not healthy."

The Xbox restructuring will involve divestment of four studios, Xbox's new head, Asha Sharma, said in ⁠a note to employees.