‘We have to be honest about where we are; we’re a challenger’ - Xbox bosses share open letter about the future

Microsoft Gaming has reverted to the Xbox brand under new leadership, with CEO Asha Sharma and Chief Content Officer Matt Booty announcing a significant strategic shift for the company. The rebranding marks a return to the Xbox name, with leadership emphasizing that the previous business model requires evolution.

The new leadership outlined several key changes for Xbox’s future. Daily active players will become the company’s primary performance metric, shifting focus from traditional measures. Xbox will reevaluate its approach to platform exclusivity, potentially opening the door to multiplatform releases. The division will also implement flexible pricing strategies and evaluate opportunities in AI integration.

Leadership acknowledged current challenges facing Xbox, noting that console players are frustrated with infrequent feature releases and that Xbox’s PC presence needs strengthening. However, the company reaffirmed that console gaming remains central to its strategy, with improvements planned across hardware, content, experiences, and services.

Asha Sharma and Matt Booty emphasized: “The model that got us here won’t be the one that takes us forward,” signaling a departure from previous strategies. This strategic repositioning comes as Xbox faces increased competition in the gaming market and seeks to adapt to evolving player expectations and market dynamics.

Sources