A new report suggested that Xbox plans to double down on exclusive games, as Microsoft explores paths to grow its ecosystem.
This week, Microsoft begun processes to eliminate 3,200 roles from its Xbox gaming division, with hundreds already laid off or leaving in divested studios. In a report in Bloomberg outlying what went wrong at Xbox, we potentially caught a glimpse at how Microsoft’s thoughts are evolving around its gaming ecosystem.
At the Xbox Showcase, CEO Asha Sharma outlined plans to make Gears of War: E-Day and Clockwork Revolution fully exclusive to Xbox consoles. Bloomberg suggests Microsoft is looking to add even more exclusive games to its lineup potentially, which echoes comments execs made to me at Summer Game Fest in LA last June.
Much like Xbox’s “it’s only four games” statement about going multiplatform previously, the “it’s only two games” mantra applies here in reverse. Microsoft is looking at making even tentpole single player games, historically multiplatform, exclusive to Xbox hardware (at least on console.) Could this mean we eventually see the next mainline Fallout and Elder Scrolls go exclusive to console on Xbox?
Bloomberg: “While big multiplayer games will still be available on all major platforms, [Xbox] will make more of its best titles exclusive to Xbox so gamers have a reason to buy its console.”https://t.co/uzaantseAn pic.twitter.com/ohiK6zUlTGJuly 7, 2026
Reaching the biggest possible audiences has been the best margin play Xbox has had in recent years. Microsoft was previously driving Xbox to chase a 30% profit margin, and an easy way to do that is sell software wherever you can. However, Asha Sharma is not operating under that mandate. Instead, Sharma is operating under an ecosystem growth mandate.
Sharma has spoken at length about how her initial focus will be on Xbox’s core: the console gamer. Console gamers in the Xbox ecosystem represent 4 times higher lifetime spending than other types of users across Microsoft’s vast gaming ecosystem. On PC, they compete with Steam for margins. On mobile, they compete with well-established and dominant Eastern titles, while handing away millions to Apple and Google for the privilege.
Despite Xbox’s retreat from PlayStation in the recent term, there remains tens of millions of active users in the Xbox ecosystem. These users are disproportionately passionate and spendy. Indeed, I would posit that anyone left in the Xbox ecosystem after all the disappointments represent the least “casually-invested” consumers in all of gaming potentially. Sharma wants to grow that base.
It’s more true than ever that Xbox represents discretionary spending, and console gaming in general. Next-gen (and even current-gen) consoles are going to be expensive, owing to the memory availability crisis, tariffs, and the rest of it.
Arguably, creating desire through exclusive content is more crucial than ever to maintain an ecosystem in this universe.
One way I’ve heard Microsoft is exploring achieving this is direct integrations between Xbox and Minecraft. Xbox CEO Asha Sharma restructured Minecraft to answer directly to her for the first time. Integrating Minecraft’s features at a platform level into Xbox consoles will be one avenue of exploration her team will look into here. What that looks like remains to be seen. I don’t think Microsoft will do anything to degrade the Minecraft experience on other platforms (especially PC and mobile), but there might be exclusive (albeit basic, but fun) integrations for Minecraft on Xbox consoles. I can see Microsoft leveraging Minecraft to sell Xbox Helix as well in some ways, with more aggressive co-marketing activations and bundles.
Longer term, Microsoft may explore doing this with Activision-Blizzard properties too, but there are currently regulatory restrictions preventing Xbox from leveraging things like Call of Duty in the same way.
PlayStation recently landed a massive (multi-million dollar) marketing deal for Grand Theft Auto 6. The marketing deal is so vast, that Rockstar can’t even mention the fact there’s an Xbox version. PlayStation rebranded its apps to match Grand Theft Auto branding, and you can expect billboards, ads, and other campaigns to follow — excluding Xbox from the conversation.
Under previous leadership, Xbox was strangely reluctant, even seemingly embarrassed, to associate some of its acquisitions with the Xbox ecosystem. Games like DOOM, Fallout, and indeed Minecraft, barely had any co-marketing with Xbox console hardware. And it has been to the console ecosystem’s detriment.
The new leadership is taking the opposite view, and it might have no choice. If consoles are to be more expensive than ever, there needs to be more reasons than ever to buy one. If I’m going to drop $1000 on a PS6 or Xbox Helix, why would I buy the box that gets less content?
Asha Sharma hopes by leveraging some of Xbox’s biggest franchises in co-marketing, co-integrations, transmedia content, and exclusivity regimes, she might be able to convert more gamers into core Xbox users.
Phil Spencer was transparent in thinking this wouldn’t be possible, suggesting in a previous interview that even if Starfield was a mega-banger, making it exclusive wouldn’t move the needle for Xbox hardware. Sharma is betting that maybe a steady stream of said bangers might do the trick.
It will take years to find out if she’s right — but will Microsoft corporate give her years to implement this strategy? That’s arguably an even bigger question.
Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.