Xbox CEO Asha Sharma told employees that Microsoft's gaming business will end the fiscal year at about a 3% profit margin, saying years of heavy spending without revenue growth "cannot continue" — as Bloomberg and The Verge reported major job cuts coming next month.

Microsoft is reevaluating its plans for Project Helix and considering new ways to lower Xbox console costs. is a senior correspondent and author of Notepad, who has been covering all things Microsoft,