{"id":5770,"date":"2026-06-18T22:59:57","date_gmt":"2026-06-18T22:59:57","guid":{"rendered":"https:\/\/www.00strategy.com\/index.php\/2026\/06\/18\/xboxs-biggest-problems-may-still-be-ahead\/"},"modified":"2026-06-18T22:59:57","modified_gmt":"2026-06-18T22:59:57","slug":"xboxs-biggest-problems-may-still-be-ahead","status":"publish","type":"post","link":"https:\/\/www.00strategy.com\/index.php\/2026\/06\/18\/xboxs-biggest-problems-may-still-be-ahead\/","title":{"rendered":"Xbox\u2019s Biggest Problems May Still Be Ahead"},"content":{"rendered":"<div class=\"pvc_clear\"><\/div>\n<p id=\"pvc_stats_5770\" class=\"pvc_stats total_only  \" data-element-id=\"5770\" style=\"\"><i class=\"pvc-stats-icon large\" aria-hidden=\"true\"><svg aria-hidden=\"true\" focusable=\"false\" data-prefix=\"far\" data-icon=\"chart-bar\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\" class=\"svg-inline--fa fa-chart-bar fa-w-16 fa-2x\"><path fill=\"currentColor\" d=\"M396.8 352h22.4c6.4 0 12.8-6.4 12.8-12.8V108.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v230.4c0 6.4 6.4 12.8 12.8 12.8zm-192 0h22.4c6.4 0 12.8-6.4 12.8-12.8V140.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v198.4c0 6.4 6.4 12.8 12.8 12.8zm96 0h22.4c6.4 0 12.8-6.4 12.8-12.8V204.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v134.4c0 6.4 6.4 12.8 12.8 12.8zM496 400H48V80c0-8.84-7.16-16-16-16H16C7.16 64 0 71.16 0 80v336c0 17.67 14.33 32 32 32h464c8.84 0 16-7.16 16-16v-16c0-8.84-7.16-16-16-16zm-387.2-48h22.4c6.4 0 12.8-6.4 12.8-12.8v-70.4c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v70.4c0 6.4 6.4 12.8 12.8 12.8z\" class=\"\"><\/path><\/svg><\/i> <img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/www.00strategy.com\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif\" border=0 \/><\/p>\n<div class=\"pvc_clear\"><\/div>\n<div>\n<p><span>W<\/span>e\u2019ve had plenty to say about Microsoft throughout the years, especially concerning Xbox\u2019s strategies (or lack thereof). Bad decision-making, layoffs, cancelled projects, questionable directions \u2013 the House of X has done it all, but that shouldn\u2019t be anything new for a massive corporation, right? Even Sony has had its share of missteps (we don\u2019t talk about August 23rd, 2024).<\/p>\n<p>But there\u2019s a world of difference between the two, and in hindsight, it\u2019s surprising to see how Xbox got to this point, where even the new CEO stepped back and decided it was better to announce a reset.<\/p>\n<p><iframe loading=\"lazy\" title=\"Xbox&apos;s Problems May Be Bigger Than We Thought\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/RCM2H5z5nZs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>Confused, especially after its latest showcase? It\u2019s understandable. After all, we saw a barrage of upcoming games, several from first-party studios with actual gameplay and even a few release windows. <em>Gears of War: E-Day<\/em> looks fantastic, especially throughout its extensive Direct. <em>Clockwork Revolution<\/em>\u2018s role-playing potential could have been better showcased, in my opinion, but it still looks quite fun. <em>Spyro<\/em> is back, <em>Minecraft Dungeons<\/em> is getting a sequel\u2026even <em>Fable<\/em>, <em>Senua<\/em> and <em>State of Decay 3<\/em> look intriguing. After all, Xbox console exclusives were back, just like several hardcore fans wanted, even if the messaging around it is more confusing than Cortana\u2019s lore at this point.<\/p>\n<p>But, once the party died down, Xbox faced the proverbial morning after. And with it, CEO Asha Sharma admitted some rather harsh truths about the number two games publisher (her words, not mine) in the world.<\/p>\n<p>An accountability margin of about 3 percent with over $20 billion in investments over the last five years (not including Activision Blizzard), only to a loss of almost $500 million in annual revenue. Storage component prices have increased several times, which will hit Xbox consoles harder than the competition due to \u201cchoices we made over the last half decade\u201d (read: Poor preparation). Not \u201cadequately\u201d funding so-called \u201cindustry-defining franchises\u201d with \u201cenormous potential and player demand\u201d, and perhaps most importantly, an infrastructure that\u2019s woefully unprepared for what\u2019s to come.<\/p>\n<\/p>\n<p>&#8220;Even <em>Fable<\/em>, <em>Senua<\/em> and <em>State of Decay 3<\/em> look intriguing.&#8221;<\/p>\n<p>A big step down from all the bravado of the last few months, and it\u2019s become quite obvious that the \u201cplan is the plan until it isn\u2019t the plan\u201d isn\u2019t as practical as one would think. And that\u2019s not even considering reports where Xbox\u2019s biggest successes \u2013 <em>The Elder Scrolls 4: Oblivion Remastered<\/em>, <em>Forza Horizon<\/em>, <em>Sea of Thieves<\/em>, <em>Flight Simulator<\/em>, etc. \u2013 have had to make up for numerous disappointments. <em>Avowed<\/em>, <em>Keeper<\/em>, <em>South of Midnight<\/em>, <em>Hellblade 2<\/em>, <em>Forza<\/em> <em>Motorsport<\/em>, <em>The Outer Worlds 2<\/em>, <em>Minecraft<\/em> <em>Legends<\/em>, <em>Bleeding Edge<\/em> \u2013 the list goes on and on, and <em>Everwild<\/em> and <em>Perfect Dark<\/em> not panning out didn\u2019t help either.<\/p>\n<p>So what does this mean for the imminent future? Why, what it always means at a massive corporation \u2013 layoffs. Microsoft hasn\u2019t confirmed this, but reports are already coming in that it will allegedly lay off 1,000 employees after June 30th. That may also include a studio closure and changes to its Xbox Game Studios lineup, which could mean anything from certain teams becoming support-focused to merging with others and existing in all but name. Keep in mind that all of this comes after several leadership changes since Sharma took over.<\/p>\n<p>That\u2019s not all, however, as Microsoft may restructure Xbox entirely. As The Information reports, some options apparently include spinning it out as a subsidiary. Why? Well, because then it could be acquired by someone else. A joint venture could also happen, not unlike Vantage Studios, which has investment from Tencent and is in charge of <em>Assassin\u2019s Creed<\/em>, <em>Far Cry<\/em> and <em>Rainbow Six<\/em>. Granted, there have been layoffs, cancellations, and more than a few rumors of development hell for some projects, but hey, <em>Assassin\u2019s Creed Black Flag Resynced<\/em> doesn\u2019t look half bad.<\/p>\n<p>And that may be exactly what Xbox meant by meeting \u201cdemand\u201d for its \u201cindustry-defining franchises,\u201d because it reportedly wants to develop new <em>Fallout<\/em>, <em>Halo<\/em> and <em>Elder Scrolls<\/em> titles at a faster pace. <em>Fallout<\/em> is obvious after the TV show\u2019s success, and it feels like Microsoft has been leaving money on the table by not capitalizing on it as we head into the third season. <em>Halo<\/em> is interesting because after numerous disappointments, you would think it\u2019d be far more hesitant. Then again, it\u2019s probably seeing higher-than-average demand for <em>Halo: Campaign Evolved<\/em>. Maybe it expects far greater returns, hence the rumors of <em>Halo 2<\/em> and <em>3<\/em> getting remakes. So expect those to be out even sooner than expected if all goes according to plan.<\/p>\n<p>And as for <em>The Elder Scrolls<\/em>\u2026well, when you\u2019re sitting on such a huge money-maker such as this, and Bethesda still doesn\u2019t have a release date for its sixth mainline game, eight years after its reveal? Especially with how successful <em>Oblivion Remastered<\/em> ended up being, never mind how quickly it was abandoned? I would demand something tangible sooner as well.<\/p>\n<\/p>\n<p>&#8220;It\u2019s probably seeing higher-than-average demand for <em>Halo: Campaign Evolved<\/em>.&#8221;<\/p>\n<p>Then again, none of these restructuring plans is exactly imminent. For the time being, Xbox will continue hyping the current roster of titles for the coming months, specifically <em>Gears of War: E-Day<\/em>, as much as possible. With a reported budget of more than $400 million, it very well should, especially with the company already bracing to potentially sell fewer copies due to not launching on PlayStation. And while it shouldn\u2019t have trouble breaking even, Xbox by its own admission is \u201ccurrently unable to make as many consoles as players want to buy.\u201d The idea is probably to cater to its existing player base, and really, it\u2019s anyone\u2019s guess if that will turn out well, especially if they can play it on Game Pass at a vastly lower cost.<\/p>\n<p>But for all the hope one may have that Xbox escapes this snafu, look no further than CEO Satya Nadella\u2019s recent statement. \u201cWe\u2019ve invested a lot. No one can accuse Microsoft of not having invested for the last 25 years. And now we have to turn this into a sustainable business that delivers what is fundamentally one of the best sources of entertainment.\u201d<\/p>\n<p>And that\u2019s true \u2013 no one is saying the company isn\u2019t investing enough money into its gaming division. However, just like with the original Xbox when it debuted back in the day, it\u2019s not just about money. Franchises like <em>Halo<\/em> and <em>Gears of War<\/em> have either been treated poorly or left by the side; failures like <em>Redfall<\/em> simply launched without any oversight; and even when presented with golden opportunities, it feels like Xbox squanders them more often than not (see: <em>Hi-Fi Rush<\/em>). Saying you\u2019ve put enough money into something is one thing, but when one of your goals is to make it a \u201csustainable business,\u201d that only tells me that you\u2019ve failed to do so in the last quarter century.<\/p>\n<p>I\u2019d hate to say it\u2019s all doom and gloom and there\u2019s no saving Xbox, but next month is seemingly all about layoffs and \u201ctrimming the fat\u201d as the higher-ups may perceive it. The next year could come down to the apparently last-minute decision to pivot to console exclusives. And beyond that, Microsoft could throw up their hands and make it someone else\u2019s problem while it bemoans memory shortages and rising costs, all while spending billions on AI, the biggest reason for the same.<\/p>\n<p>Xbox may still live to fight another day, but even its most ardent admirers can\u2019t tell you in what shape and form.<\/p>\n<p><em>Note: The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, GamingBolt as an organization.<\/em><\/p>\n<hr>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<div class=\"pvc_clear\"><\/div>\n<p id=\"pvc_stats_5770\" class=\"pvc_stats total_only  \" data-element-id=\"5770\" style=\"\"><i class=\"pvc-stats-icon large\" aria-hidden=\"true\"><svg aria-hidden=\"true\" focusable=\"false\" data-prefix=\"far\" data-icon=\"chart-bar\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\" class=\"svg-inline--fa fa-chart-bar fa-w-16 fa-2x\"><path fill=\"currentColor\" d=\"M396.8 352h22.4c6.4 0 12.8-6.4 12.8-12.8V108.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v230.4c0 6.4 6.4 12.8 12.8 12.8zm-192 0h22.4c6.4 0 12.8-6.4 12.8-12.8V140.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v198.4c0 6.4 6.4 12.8 12.8 12.8zm96 0h22.4c6.4 0 12.8-6.4 12.8-12.8V204.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v134.4c0 6.4 6.4 12.8 12.8 12.8zM496 400H48V80c0-8.84-7.16-16-16-16H16C7.16 64 0 71.16 0 80v336c0 17.67 14.33 32 32 32h464c8.84 0 16-7.16 16-16v-16c0-8.84-7.16-16-16-16zm-387.2-48h22.4c6.4 0 12.8-6.4 12.8-12.8v-70.4c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v70.4c0 6.4 6.4 12.8 12.8 12.8z\" class=\"\"><\/path><\/svg><\/i> <img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/www.00strategy.com\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif\" border=0 \/><\/p>\n<div class=\"pvc_clear\"><\/div>\n<p>We\u2019ve had plenty to say about Microsoft throughout the years, especially concerning Xbox\u2019s strategies (or lack thereof). Bad decision-making, layoffs, cancelled projects, questionable directions \u2013 the House of X has done it all, but that shouldn\u2019t be anything new for a massive corporation, right? Even Sony has had its share of missteps (we don\u2019t talk [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":5771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[171,172,44,36,164,216,211,212],"class_list":["post-5770","post","type-post","status-publish","format-standard","has-post-thumbnail","category-gaming","tag-article","tag-feature","tag-microsoft","tag-mixtv","tag-pc","tag-xbox","tag-xbox-series-s","tag-xbox-series-x"],"a3_pvc":{"activated":true,"total_views":2,"today_views":1},"_links":{"self":[{"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/posts\/5770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/comments?post=5770"}],"version-history":[{"count":0,"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/posts\/5770\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/media\/5771"}],"wp:attachment":[{"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/media?parent=5770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/categories?post=5770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.00strategy.com\/index.php\/wp-json\/wp\/v2\/tags?post=5770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}