Microsoft’s new Xbox CEO, Asha Sharma, has outlined a fresh strategy for what she dubs as a “return of Xbox.” In a joint memo with Xbox Chief Content Officer Matt Booty, Sharma and Booty detail their vision of Xbox’s future, focusing on daily active players and prioritizing hardware, content, experience, and services.
“Players are frustrated,” acknowledge Sharma and Booty. “Console feature drops are less frequent. Our PC presence is inadequate. Pricing is challenging for users. Core experiences like search, discovery, social, and personalization are fragmented. Developers and publishers demand more: better tools, insights, and a platform for quicker growth.”
Instead of following the same model that brought Xbox to its current state, Sharma and Booty propose building a global platform that unites players and creators. They emphasize that Xbox should be “affordable, personal, and open,” providing flexible pricing and a customized, connected user experience.
Microsoft is also reevaluating its stance on Xbox-exclusive games. “We’ll reassess our approach to exclusivity, windowing, and AI, and will update as we gain insights,” state Sharma and Booty. The memo includes a commitment to transparency and embraces a culture of self-critique, even to the point of discomfort.
Read the complete memo below:
Dear team,
Xbox has always stood out. We started with the concept that games should unite people through shared experiences, leading to the creation of the first Xbox in 2001 and Xbox Live in 2002. Today, Xbox has reached over 500 million players globally with significant franchises.
From inception, Xbox thrived on taking risks that others shunned, betting on gaming to define the living room space. This spirit has sustained us for 25 years and is essential for our future.
We have work to do.
Players are frustrated. Console feature releases are sparse, our PC presence is lacking, and pricing is becoming difficult to maintain. Core experiences like search, discovery, social, and personalization remain disjointed. Developers and publishers demand more: superior tools, insights, and a growth-friendly platform.
Simultaneously, a new generation of players is emerging with new expectations. Their attention is split between games and other media. They seek content in familiar venues, wish to shape their gaming worlds, and desire to create and socialize as well as play.
These shifts occur amid industry-wide transformations.
While the console remains robust, Windows now accounts for more players and playtime, fueling fierce competition. Players enjoy a plethora of games, though the cost and development time for major titles are rising, pressuring creative risk-taking. Recent successes often spring from small teams or individual creators, with platforms like Roblox delivering experiences rivalling top franchises. Many players now choose subscriptions and services as their main way to play, expecting instantaneous access and evolving libraries.
The industry is evolving into a global, competitive landscape. Over half of market revenue and growth happens outside our primary markets. Yet, the rest of the world is more than just a market; its developers increasingly vie with established Western studios, combining scale and speed to reinvent once-mature genres.
The road ahead cannot be paved with former models.
Xbox aims to be where the world plays and creates.
What is Xbox, moving forward?
Xbox will be a global platform for players and creators, with the console as the base, offering premium experiences and expanding through the cloud to other devices. Game progress, friends, and identity will persist across console, PC, mobile, and cloud platforms.
Xbox will prioritize affordability, personalization, and openness, offering flexible pricing and allowing users to customize play styles. Connecting players with tailored experiences and communities, we will welcome creators of all scales, providing tools for global reach and game growth.
Our guiding focus will be daily active players.
We will realize this goal by focusing on four key priorities: hardware, content, experience, and services.
Hardware:
– Stabilize Gen9 as a robust, quality foundation.
– Deliver Project Helix focused on performance for console and PC gaming.
– Lead in user-friendly, high-performance accessories.
– Build a dynamic ecosystem that enhances choice and reach.
Content:
– Develop enduring franchise portfolios.
– Strengthen third-party partnerships and future plans.
– Target growth in China, emerging markets, and mobile audiences.
– Maintain strong stewardship of live games and promote platforms like Minecraft and Elder Scrolls.
Experience:
– Enhance core elements for players and partners.
– Position Xbox as the top platform for game development and growth.
– Revamp search, customization, social interaction, and personalization to unite the community.
Services:
– Strengthen Game Pass with distinctive features and robust economics.
– Return to sustainable growth with disciplined spending.
– Ensure cloud gaming is fast and reliable across devices.
– Use mergers and acquisitions to accelerate when organic growth is too sluggish.
Alongside, we will reevaluate our approach to exclusivity, windowing, and AI, sharing insights as we learn and decide.
We are Xbox.
To achieve our