Xbox is preparing to lose five development studios and over 3,000 staff, raising questions about Microsoft's strategy for the future. Despite massive layoffs—over 9,000 in the last three years—Microsoft remains confident, but analysts warn that a retreat to past franchises may not work.
Mass Layoffs and Uncertain Future
Monday's mass layoffs at Xbox were predictable, as Microsoft has repeatedly cut staff in recent years. Over 9,000 people have been laid off from the Xbox division in just three years, with more expected next year. Some speculate, including one of Xbox's original founders, that new boss Asha Sharma may be winding down the business. However, Microsoft, with over 225,000 employees globally, sees 9,000 layoffs as a drop in the ocean.
Historical Missteps
Xbox, turning 25 this autumn, has a history of impatience. The original Xbox was abandoned early for the Xbox 360, which was then sidelined for Kinect. The Xbox One launch focused on TV, leading to its downfall. This pattern of seeking shortcuts and failing to nurture successes has plagued the brand.
Sharma's Vision: Greater Focus
Sharma emphasizes 'greater focus,' likely on core franchises like Halo, Gears of War, Forza, Fable, and Bethesda's Fallout and The Elder Scrolls. She has expressed frustration with Bethesda's slow releases, but critics note that executives avoid consequences while ordinary staff suffer. Microsoft owns Fallout: New Vegas developer Obsidian but hasn't produced a remaster, highlighting poor management.
Outdated Franchises and Third-Party Future
Halo and Gears of War are seen as outdated, with gameplay and themes stuck in the Xbox 360 era. While Forza Horizon remains popular, other first-party titles struggle. Sharma may abandon avant-garde studios like Double Fine and Ninja Theory, but focusing on old franchises has failed before. Analysts suggest Xbox should become a full third-party publisher, dropping hardware plans like Project Helix. However, Sharma's statements suggest denial, ignoring that few buy Xbox hardware and first-party games lack interest.
If Sharma is not winding down Xbox, she may be trying to turn back the clock to pre-Xbox One days. But making expensive games exclusive to a niche console is financially unviable. The industry hopes for a surprise strategy, but likely Xbox remains doomed and desperate.
