Xbox executives announce return to Xbox branding and reevaluation of game exclusivity in a company meeting.
Xbox executives announce return to Xbox branding and reevaluation of game exclusivity in a company meeting.
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Xbox drops Microsoft Gaming name and reevaluates exclusivity

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Xbox CEO Asha Sharma and chief content officer Matt Booty announced the gaming division is reverting from 'Microsoft Gaming' to simply 'Xbox.' In a memo shared on Xbox Wire following an all-hands meeting, they addressed player frustrations and pledged to reevaluate the approach to game exclusivity. The move signals a renewed focus on console as the foundation amid broader platform ambitions.

Asha Sharma, who took over as Xbox CEO two months ago, shared the memo with staff on April 23 and published it on Xbox Wire. 'Players are frustrated,' she wrote. 'New feature drops on console have been less frequent. Our presence on PC isn’t strong enough. Pricing is getting harder for people to keep up with. And core experiences like search, discovery, social, and personalization still feel too fragmented.' Developers seek better tools and insights, the memo added. Microsoft counts 500 million daily active players across its services, from Game Pass to mobile titles like Candy Crush. Console remains 'at the foundation,' with Xbox to be 'affordable, personal, and open.' A 16-point plan includes stabilizing the current generation, cost discipline, and potential acquisitions where growth lags. The executives wrote, 'Microsoft Gaming describes our structure, but it does not describe our ambition. So, we are going back to where we started and changing our team’s name. We are Xbox.' The division adopted the Microsoft Gaming name in 2022 amid the Activision Blizzard acquisition. Sharma and Booty stated they will 'reevaluate our approach to exclusivity, windowing, and AI, and share more as we learn and decide.' No changes were specified for announced multiplatform releases like Starfield on PS5 or upcoming Forza Horizon 6 and the Halo: Combat Evolved remake on PlayStation. Gears of War: E-Day remains confirmed for Xbox and PC in 2026, with no other platforms announced. '62 days in, we’re proud of how we’ve honored our commitments of great games, return of Xbox, and future of play,' they concluded.

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Reactions on X to Xbox dropping the 'Microsoft Gaming' name and reevaluating exclusivity are predominantly positive, praising new CEO Asha Sharma's bold reset and renewed console focus. High-profile accounts note strategic shifts toward daily active players. Skeptical voices urge caution pending actions, while users express hope for returning exclusives.

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News illustration showing the impact of Xbox layoffs with employees in an office packing boxes.
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Xbox announces 3200 layoffs in major restructuring

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Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

Xbox executives have clarified the company's approach to console exclusives following announcements at the Summer Game Fest.

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Xbox CEO Asha Sharma said a healthy console business is necessary but not sufficient for success. She spoke in an interview amid ongoing layoffs at Microsoft Gaming.

Xbox CEO Asha Sharma and Xbox Game Studios Head Matt Booty emailed employees on June 10 with a blunt message that current operations cannot continue. The note outlined five harsh realities facing the division, including low profits and rising costs. Bloomberg separately reported that major layoffs are planned for next month.

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Microsoft announced major layoffs across its gaming division and other units on July 6, 2026. The cuts total 4,800 positions, or 2.1 percent of the global workforce. Xbox is divesting several studios as part of the reset.

Microsoft is reportedly in talks to close several Xbox game studios as part of a broader restructuring. Negotiations involve studios behind well-known titles including Psychonauts, South of Midnight, and Hellblade.

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Shawn Layden, who oversaw PlayStation Studios until 2019, said Microsoft must choose between becoming the world's largest game publisher or a competitive console platform. He argued the two paths cannot converge.

 

 

 

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