New Xbox CEO Asha Sharma has already suggested that some major changes are expected within Microsoft’s gaming division over the next 100 days, and some new reports have clarified what some of those plans might be. These new goals range from refocusing on Xbox’s biggest franchises to becoming an autonomously-operated subsidiary of Microsoft, rather than part of Microsoft proper.
On June 12, a report from Windows Central explained how many games published by Xbox over the past couple of years — including Avowed, Forza Motorsport, Keeper, Kiln, Minecraft Legends, Ninja Gaiden 4, Senua’s Saga: Hellblade 2, and South of Midnight — did not meet expectations in terms of sales or Game Pass retention. With the rising costs of hardware, bloated development timelines, and several canceled projects also eating away at Xbox’s bottom line, that report establishes why Asha Sharma is making extensive changes to Xbox.
A separate report from The Information released on the same day revealed what many of those changes will actually look like, though. The first, which supports comments recently made by Xbox leadership, is a refocusing on Xbox’s biggest franchises, like Halo, Fallout, and The Elder Scrolls. All have lacked new games in recent years, so the new Xbox leadership team wants to reinvest in those safer-bet IPs in the hopes that they’ll be successful.
More shockingly, The Information claimed that Microsoft is considering spinning off Xbox from Microsoft. Instead, it could potentially be restructured as a wholly owned subsidiary or a joint venture that other companies could invest in or buy from Microsoft. Although the report admits that no restructuring that radical is imminent, it’s still very surprising to hear something like that is on the table.
These new reports paint a picture of the very self-inflicted dire straits that Xbox currently finds itself in and how the company will likely make significant changes to survive. In the short term, layoffs are expected in the coming weeks. Long-term, expect Xbox to care more about franchises like Halo or The Elder Scrolls than experimental titles like Keeper or South of Midnight.