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Xbox CEO Asha Sharma recently stated in an internal town hall that the division will not survive if it relies solely on reviving past titles. According to transcripts obtained by Windows Central, Sharma emphasized that the company must find the courage to invent new intellectual properties to reach broader audiences.
Despite this focus on innovation, the company is simultaneously doubling down on established franchises. Development of the Halo series is shifting to Activision, while Obsidian Entertainment is being moved under Bethesda to focus on Fallout projects. Sharma expressed a desire for great games to evolve into global billion-dollar franchises.
Critics note a disconnect between Sharma's vision and recent corporate actions. Microsoft has ceased funding studios like Double Fine, Ninja Theory, Compulsion Games, and Undead Labs, all of which previously developed original IP. Many of these teams have pursued management buyouts to avoid total closure.
The restructuring has raised concerns regarding the future of unique titles. Observers suggest that moving studios like Obsidian under larger entities may prioritize sequels over original projects like Pentiment. Additionally, reports indicate that id Software has been reduced to half its previous size, potentially complicating future development efforts.
