Game over for 20% of Xbox staff as Microsoft hits reset: We ‘didn’t focus on the core business,’ CEO says. ‘We simply spread ourselves too thin.’

Good morning. On Fortune’s radar today:

Exclusive: Xbox CEO on why she is laying off 20% of her staff as Microsoft hits reset.

Markets: Selloff in Asia.

“Doom loop”? Strategy is selling bitcoin while hoping it also goes up.

The very rich are different from you and me—as this household spending stat shows.

The cost of AI as hyperscalers enter their negative cash flow era.

Foreign fans at the World Cup are gorging themselves on the American foods they don’t get at home.

Mass layoffs at Microsoft as Xbox sheds 20% of staff

Asha Sharma, CEO of Xbox, unveiled the largest restructuring in its history in what she described as a fundamental reset of how Xbox operates and invests, Fortune’s Sebastian Herrera reports.

It primarily includes layoffs that will affect roughly 3,200 people, or 20% of staff. The cuts are part of a broader workforce reduction at Microsoft announced Monday that is expected to impact about 2% of its 228,000 employees. Xbox is also spinning off four of its studios. “In order to grow, we made a bunch of bets … and as we did that, we inherently didn’t focus on the core business,” Sharma told Fortune. “The number one measure of your strategy is what you put your resources behind, and we simply spread ourselves too thin.”

The unit’s new plan centers on returning focus to its flagship Xbox console, which represents 80% of its business.

Big selloff in Asia leads global stocks downward

S&P 500 futures were down 0.21% this morning. The index rose 0.72% yesterday. 

In Europe, the Stoxx 600 was flat in early trading and the U.K.’s FTSE 100 was up 0.42% before lunch.

Asia: South Korea’s KOSPI was down 4.91%. Japan’s Nikkei 225 was down 2.12%. India’s Nifty 50 was flat. China’s CSI 300 was down 1.03%. 

Brent crude was $72 per barrel this morning, up from a low of $71 yesterday.

“A doom loop of its own making”: Michael Saylor’s Strategy sells bitcoin while hoping it also goes up

Bitcoin took a sharp dip yesterday before regaining ground this morning, after Michael Saylor’s Strategy disclosed it had sold $216 million worth of Bitcoin to shore up its cash position. Strategy holds roughly 4% of all bitcoin, and Saylor had previously said he would never sell.

Chris Beauchamp, chief market analyst at investing and trading........

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