Microsoft plans to change how it sells video games to the public completely. The technology giant might start keeping its best games exclusive to the Xbox console once again. Xbox CEO Asha Sharma and Chief Content Officer Matt Booty revealed this massive shift on Thursday afternoon. The 2 executives sent a detailed memo to their entire gaming staff to explain the situation. They want to create a brand new master plan to help Xbox survive and win in the modern gaming era.
In their message, Sharma and Booty promised to rethink how the company handles game exclusivity, release windows, and artificial intelligence. They plan to share more details as they learn new information and make final decisions. This marks a massive U-turn from the strategy Microsoft started back in 2024. During that time, former gaming boss Phil Spencer pushed the company to release Xbox games on competing consoles. He wanted to reach over 1 million new players and keep big gaming franchises profitable.
Putting games on other systems caused serious problems for the hardware division. When Microsoft launched massive titles like Halo and Gears of War on the PlayStation 5, gamers stopped buying Xbox consoles. Fans saw exactly 0 reasons to spend hundreds of dollars on an Xbox if they could play the same games on a Sony machine. Losing those exclusive titles severely hurt the hardware brand and angered long-time loyal fans who invested heavily in the ecosystem.
The new leadership team openly admits its past mistakes. Sharma and Booty wrote that players currently feel very frustrated with the Xbox platform. The executives listed several major problems hurting the brand right now. They noted that the company rarely drops new features for the console anymore. They also admitted that Xbox fails to capture enough PC gamers and struggles to offer hardware prices that normal families can actually afford in today’s economy.
The memo also highlights major software issues. Core experiences like player search, game discovery, social menus, and personalization feel too broken and separated. The executives bluntly told their staff that the old business model will not help them succeed tomorrow. Microsoft faces fierce competition from foreign game studios. Even small teams of 5 people or 1 single creator now make some of the biggest hit games in the world, pulling attention away from massive corporate projects.
To fix these deep issues, Xbox will change its main goal. The executives announced that their new north star will focus entirely on daily active players. In the past, Microsoft cared mostly about total cash revenue or getting 1.5 million new Xbox Game Pass sign-ups. Now, they want to see how many people actually turn on their consoles and play games every single day. Their top priority is to fix the fundamentals for both the players and their corporate partners.
The leaders also addressed the future hardware. They promised to build an Xbox that feels open, personal, and highly affordable. Right now, tech experts expect a severe global memory shortage to last until the year 2030. This severe shortage makes computer parts very expensive, sparking fears that the next console will cost way too much money. Microsoft wants to avoid pricing normal gamers out of the hobby when the new hardware arrives.
Engineers are currently working on the next-generation console under the secret codename Project Helix. Microsoft plans to launch this brand new machine in 2027 or 2028. To keep gamers happy, the company promises flexible pricing options so anyone can jump in and start playing immediately without spending a fortune upfront.
Microsoft has already started changing how it charges customers. Earlier this week, the company lowered the monthly price of its Xbox Game Pass subscription, saving gamers around $5, depending on their plan. However, this lower price comes with a catch. Microsoft removed access to brand new Call of Duty games on launch day for standard subscribers, forcing them to buy the $70 game separately if they want to play on release day.
