- Asha Sharma has announced a huge reset for Xbox following a new round of layoffs.
- She admits moves like the focus on Game Pass and multiplatform releases weren’t as effective as expected.
- The CEO states that such initiatives performing below expectations weakened the Xbox brand during this generation.
Xbox’s latest announcement has raised alarms for the gaming giant. CEO Asha Sharma has confirmed intentions to significantly overhaul Microsoft’s gaming division over the coming months, which means that over 3,000 employees will lose their jobs in the process.
According to the CEO, Xbox has been underperforming significantly over the course of this generation. The CEO also states that recent initiatives like Game Pass and third-party releases haven’t been too effective.
Why it matters: Xbox centered its entire console business around Game Pass this generation. The CEO’s latest statement suggests this gamble was ultimately a misstep.
A recent email sent to the Xbox team was recently shared by Asha Sharma on social media. This email highlights the dire state of Microsoft’s gaming business, which, as the CEO puts it, is operating at 3-10x lower margins than the competition’s.
Asha Sharma also admitted that while initiatives like Game Pass and the multiplatform releases were valuable, they ultimately didn’t grow nearly as fast as the company had expected.
For context, the service boasted over 34 million subscribers at one point. However, this figure was a fraction of the total player base across Xbox and PC. As per the Xbox CEO, Game Pass’ stagnation and limited success from recent efforts have resulted in Xbox becoming weaker over time.
As a result, she believes the best option is to now pursue a full reset for Xbox.
We bet on Game Pass, multiplatform, and a broader content portfolio. They did not grow at the pace we expected. As that happened, our business weakened.
-Asha Sharma
Of course, Game Pass underperforming isn’t a huge surprise since Xbox lost subscribers rapidly due to increasing prices. In response, Asha Sharma was quick to bring down prices, but her latest statement suggests far bigger changes are on the way for the subscription.
What are your thoughts on Asha Sharma’s analysis of Game Pass? Head over to the Tech4Gamers Forums to discuss.
Thank you! Please share your positive feedback. 🔋
How could we improve this post? Please Help us. 😔
[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
Join Our Community
