Xbox has been “restructuring” over the past summer, which has seen thousands of job losses via cuts and divestitures, and has left Xbox fans wondering what the aftermath will ultimately look like.
Xbox CEO Asha Sharma has made no secret of her intent for content moving forward: Microsoft will double down on its biggest and most visible Xbox franchises, including the likes of Fallout, Call of Duty, Candy Crush, World of Warcraft, among others.
Some of Xbox’s more eclectic studios, such as Ninja Theory, Double Fine, and Compulsion have either been spun off as separate, or outright shut down. These studios were all working on new franchises generally speaking, and while they didn’t become financial success stories, the creativity was often award-winning.
Sharma’s comments about Xbox’s biggest franchises have left many wondering if there’d still be space for creativity and newness at Xbox, and it seems the answer is “yes,” complete with a warning on over-relying on existing franchises.
“On content, I think this is probably the thing that you are all seeing the most about as we’re making a lot of changes,” Sharma said at the Xbox Town Hall this past week, in wholly unauthorized transcripts shared to Windows Central via multiple trusted sources.
Sharma reiterated the plan to focus on the biggest Xbox franchises, but also noted that relying on past victories won’t help Xbox win the future.
“We’re backing our strongest franchises. I want our great games to become great global billion-dollar franchises. I would also like to see us continue to create enduring new IP. We will not survive if we only revive on the past. We have to find new ways, and courage, to have invention on new IP, that reaches new sets of audiences.”
Sharma remarked upon opportunities to grow King and the casual gaming segment in general, where titles like Monopoly Go and Block Blast have eaten into Candy Crush’s casual gaming market share in recent years. Asha Sharma also talked about simplifying their studios, reiterating decisions to move some IP, like Halo and Sea of Thieves under Activision, hinting that more “simplification” could be on the way … what that “simplification” might look like remains to be seen.
“Everything big once started as something small.”
Xbox has been aggressively exploring ways to drive down costs in general this year. The opportunity within Xbox’s ecosystem has diminished as hardware stock levels collapse, owing to the RAMpocalypse. Xbox’s disastrous multi-platform strategy of yesteryear saw the platform lose relevancy while boosting competitors, leading to declines for major third-party games like FIFA, Fortnite, and NBA 2K titles on Xbox Series X|S as well.
Moving back to exclusive games has given Xbox a boost, with users returning to the platform for titles like Gears of War: E-Day and Forza Horizon 6, but growing Xbox again will probably take a multi-year, multi-game, multi-franchise effort, coupled with some sort of miracle on the hardware side. Xbox Series X|S and console hardware in general has moved wholly to being a luxury purchase, putting pressure on Xbox’s chances.
In an interview with Windows Central at the start of the year, Chief Content Officer Matt Booty remarked that “everything big once started as something small,” in reference to investing in new IP, which has always resonated with me. Indeed, Microsoft has partnered up with Hideo Kojima of Metal Gear fame for PHYSINT, complete with movie and TV rights in development with Xbox’s new XP entertainment licensing division.
It’ll be interesting to see if Sharma’s Xbox does more in this space … even if Xbox has made stark, quite devastating cuts within its existing teams. AI is muddying the water and blowing up component costs. There are more games than ever, and for many, less free time and money than ever. Micro-spend in service games continue eating up all the spend and users, and finding new cohorts seems more difficult than ever …
The challenges on Xbox’s plate are numerous, but being able to land exclusivity over the next Fortnite, Roblox, or indeed, Minecraft, is doubtless the dream of every major entertainment company. Does Sharma’s Xbox have it in them? As usual, only time will tell.
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