New Xbox CEO Asha Sharma continues to carry out drastic reforms to the gaming giant. During an all-hands meeting with employees today, she announced that the name "Microsoft Gaming" will be deprecated. In the future, Microsoft will re-introduce "Xbox" as the name of its gaming division. Sharma also laid out her vision for the future of Xbox, which includes possible tweaks to exclusive game modes.
In a memo co-written by Asha Sharma and Xbox chief creative officer Matt Booty, they outlined four priorities for the brand going forward. These priorities are hardware, content, experience and services. For services, its overarching goal is to "strengthen Game Pass with clear differentiation and a sustainable economic model."
Deeply explore the global growth engine: focus on the Chinese market
Behind the return of the "Xbox" brand, Sharma emphasized the importance of global growth markets, especially the Chinese market. She pointed out that Xbox must not only maintain its lead in the Western market, but also deeply integrate into China, the most active gaming ecosystem in the world.
Xbox must become our logo
"We perform best when all of us are in sync. "Microsoft Gaming" describes our architecture, but cannot describe our ambitions. So, we have to go back to the starting point and change the team name."
In 2022, Microsoft announced the acquisition of Activision Blizzard for US$75.4 billion and officially launched the name "Microsoft Gaming" at the same time. Phil Spencer was the first CEO of Microsoft Gaming at the time.
The console remains the foundation
Sharma and Booty said that their goal for the future of Xbox is to "build a global platform that connects players and creators around the world", and that the console will become the "foundation" of a "premium" experience.
“Xbox is committed to making gaming experiences affordable, personal, and open. We’ll offer flexible pricing plans to make it easy to get started and keep playing. The gaming experience will adjust to your preferences, allowing you to customize how you play and find what you want. Find the content you want and make friends with like-minded people. We will be open to all creators, from individual developers to large studios, providing everyone with the tools to reach a global audience and continue to grow their games."
Core goal: live. Jumping player scale
Sharma and Booty said that the core goal of Xbox in the future will be "active players". In order to achieve this goal, they will focus on the four priorities of hardware, content, experience and services to execute this Strategy:
Hardware:
Stabilize the ninth generation console and create a healthy and high-quality cornerstone
Launch Project Helix, leading in performance and supporting console and PC games
Leading the field of comfortable, personalized and high-performance peripherals
Building a strong ecosystem to expand choices Land and coverage
Content:
Growth and continuation of the evergreen IP series loved by players
Evolving third-party partnerships to strengthen the product lineup for the next five years
Expanding into China, emerging markets and mobile-first audiences
Maintaining and growing online operating games
[ GT5GT] Enhance the experience of creator-focused platforms (such as Minecraft, The Elder Scrolls, Sea of Thieves):
[GT11G T] Solve fundamental problems for players and partnersMake Xbox the best choice for developers and creators to build and grow
Revolutionize discovery, customization, social and personalization capabilities to connect the entire community
Services:
Strengthen Game with clear differentiation and a sustainable economic model Pass
Return to sustained growth through strict cost control
Let cloud gaming have a native, fast, and reliable experience on TVs and low-cost devices
Targeted use of mergers and acquisitions to accelerate development in areas where organic growth is too slow.
Full text of letter from all Xbox staff
Our original intention is simple: games should connect people through shared experiences. It's this philosophy that led to the original Xbox in 2001, Xbox Live in 2002, and a host of connectivity options from friend lists and achievement systems to party features and cross-device play. Today, Xbox has reached more than 500 million players around the world and owns a series of the most important top IPs in the entertainment industry.
From the beginning, Xbox has been built by people who dare to do what others dare not. We were betting internally on the consumer market as an enterprise company because we believed gaming was going to define the living room experience and we couldn't miss this opportunity.
This spirit has accompanied us through the past 25 years and will lead us to continue moving forward.
We still have a heavy responsibility
Players feel a little frustrated.
System updates for consoles have become less frequent; our performance in the PC market is not strong enough; the price threshold is prohibitive for some people; and the core experience of search, discovery, social and personalization still seems fragmented. Developers and publishers are also demanding better tools, deeper insights, and a platform that can help them grow quickly.
At the same time, a new generation of players is entering the Internet with different expectations. Their time is divided between games, media and everything else vying for their attention. They want to see more content on familiar platforms, they want to shape the worlds they play in, and they want to co-create and socialize rather than just sit together and play games.
These changes are taking place against the backdrop of industry reshaping.
The console market is still large and robust. The Windows platform now represents more players and longer online time, and competition is becoming increasingly fierce. Although players have more ways to access games than ever before, the cost and time to create masterpieces are also rising, which puts tremendous pressure on product output and risk assessment. Some of the most popular works recently were created by small teams or even individuals, and the scale of experiences generated by platforms like Roblox is comparable to that of large IPs. In addition, more and more players are choosing subscription services as their primary way to play, and they expect instant access, ongoing value, and a constantly updated library of games.
The gaming industry is becoming global and extremely competitive. More than half of the market's revenue, players and growth comes from outside our core markets. But the rest of the world is more than just a massive market, where developers are increasingly competing against established Western studios with the scale, speed and courage to reinvent genres that were once thought to be established.
The model that made us successful in the past cannot take us into the future.
Xbox will become the place where the world plays
In the next era, what will Xbox become?
Xbox will be the place where the world goes to play and create. We will build a platform that connects players and creators around the world. Console is our foundation, delivering a top-notch experience; cloud technology brings that experience to any device. You can play however you want, and your games, progress, friends, and identity will span consoles, PCs, mobile phones, and the cloud.
Xbox is committed to creating an experience that is approachable, personalized and open. We will provide flexible pricing to make it easy for players to get started and keep playing. The system experience will change according to you, allowing you to customize the way you play, helping you discover your favorite content and connect with like-minded partners. We'll be open to all creators, from indie developers to major studios, giving everyone the tools to reach a global audience and keep their games growing.
Our new "North Star" (core goal) will be: daily active players.
We will execute this strategy through the following four priorities:
Hardware: Stabilize the ninth generation console and create a healthy and high-quality cornerstone; launch Project Helix to stay ahead in performance and support the enjoyment of console and PC games; lead the field of comfortable, personalized and high-performance peripherals; build a strong ecosystem to expand choice and coverage.
Content: Grow and continue the evergreen IP series beloved by players; evolve third-party partnerships to strengthen the lineup of titles over the next five years; expand into China, emerging markets, and mobile-first audiences; maintain and grow online operating games. Elevate creator-focused platforms (e.g. Minecraft, The Elder Scrolls, Sea of Thieves).
Experience: Solve fundamental problems for players and partners; Make Xbox the best choice for developers and creators to build and grow; Completely improve discovery, customization, social and personalization capabilities, and connect the entire community.
Services: Consolidate Game Pass through clear differentiation and a sustainable economic model; return to sustained growth through strict cost control; allow cloud games to have a native, fast, and reliable experience on TVs and low-cost devices; use mergers and acquisitions in a targeted manner to accelerate development in areas where organic growth is too slow.
Along the way, we will re-evaluate exclusivity strategies, release windows, and the use of artificial intelligence, and share more details as we learn and make decisions.
We are Xbox
To realize this ambitious plan, the way we work must change.
We perform best when we are all on the same page. "Microsoft Gaming" describes our architecture, but not our ambitions. So, we're going to go back to where we started and change the team name.
We are Xbox
We have a highly autonomous culture where unbridled creativity can thrive. Our job is not to smooth over differences, but to connect everyone into a whole that is greater than any single studio or product.
We must be honest about the current situation. We are a challenger, and responding to the situation requires speed, energy, and a degree of self-examination—which can be uncomfortable. At our best, we should uphold:
Win every player
Protect our art
Maintain the spirit of rebellion
Pursue progress rather than perfection
Focus on effectiveness over form
Put core before extension
Focus on problem solving
Speed is learning
Creators over stewards
Clarity is kindness
Over the past five years, Xbox and the industry have experienced unimaginable upheaval, but this team has always delivered on its commitment to the community. Thank you all for focusing on the core mission. Over the next 62 days, we are proud to deliver on our promise of "Great Games, Return of Xbox, and the Future of Gaming." We're here to create the most creative, daring work of our careers, and that's what we'll do together.
With gratitude,
Matt & Asha
