Xbox users are reportedly facing extensive problems when trying to connect to Xbox Live, with a common issue hindering access to downloaded games.

Xbox outage: CEO Asha Sharma came under fire after announcing layoffs of 3,200 employees and applying for H-1B visas. (X@cutoffs_io)

Amid the Xbox outage, social media has been filled with reports of issues impacting Xbox Live and its related services. A significant number of users have mentioned encountering problems while trying to access their purchased games and Xbox Game Pass titles that have been downloaded to their Xbox consoles.

The issue appears to be impacting the Xbox Live license verification process that is necessary for certain games to launch on your console. This issue may also influence downloaded games that do not include an online multiplayer feature and are expected to function offline. The occurrence of this problem, coinciding with various discussions about the transient nature of digital media, has certainly caught the attention of many users who are affected.

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This action is a component of the broader AI-driven restructuring by the Microsoft-owned company, with Xbox being the most affected division. Sharma said in a letter to employees that the division's "business is not healthy."

In addition to layoffs, the new CEO has been implementing extensive changes within the organization since assuming her role in February of this year, following the departure of Microsoft veteran Phil Spencer.

In the wake of declaring job cuts that will affect thousand of staff members, Sharma has been subjected to online mockery for purportedly removing American jobs. Several people on X have described the layoffs as opportunities being given to workers on H-1B visas.

“Indians only ever hire Indians,” another said.

“This is how Indians gut our Tech companies, our Universities, and our Hospitals. Once a single Indian gets into a position of power, they systematically fire Americans, while only hiring other Indians from their specific region in India. They then set up offshoring pipelines back to India, so that anyone they can’t hire through H-1B, then hire in India until they can transfer via L-1 (manager) visa," a third X user stated.

Xbox reportedly employs approximately 16,000 people worldwide.

Sharma, who took on the role of Xbox CEO in February of this year, has been implementing significant changes within the gaming division. Her strategy for a ‘reset’ is designed to rejuvenate the brand's faltering business.

Last month, Microsoft disclosed plans to terminate around 4,800 positions, which constitutes roughly 2.1 percent of its global workforce. The company remains committed to substantial investments in artificial intelligence while seeking methods to enhance efficiency throughout its operations, as reported by Reuters.

The CEO of Xbox obtained a Bachelor of Science degree in Business from the Carlson School of Management at the University of Minnesota in 2011. While studying there, she also took the initiative to lead a community program aimed at supporting at-risk teenagers in Brooklyn.

After completing her education, Sharma began her career in Microsoft’s marketing division, where she was employed for two years. In 2013, she transitioned to Porch Group as Chief Operating Officer.

Following a four-year tenure there, Sharma joined Meta in 2017, where she held the positions of head of product for Messenger and Instagram Direct, as well as General Manager of calling, video, and children's experiences, as indicated on her LinkedIn profile.

In 2021, Sharma was appointed as Chief Operating Officer (COO) of Instacart and continued her role with the company through its public offering in 2023.

In 2024, she returned to Microsoft as President of CoreAI Product, overseeing Azure AI, machine learning systems, and various other AI products, before assuming the role of Executive Vice President and CEO of Microsoft Gaming (now known as Xbox) in February of this year.