At an internal town hall, Xbox appears to have sketched out a new strategy. Multiple reports say Xbox CEO Asha Sharma told staff the company “will not survive” if it keeps relying only on legacy franchises. The plan has two tracks: Xbox still wants its biggest series to grow into “great global billion-dollar franchises,” but Sharma also reportedly said the company needs “new ways, and courage” to create original IP for new audience segments.
That marks a real change for a business that’s spent years leaning on established brands to drive Xbox Game Pass, console marketing, and platform strategy. The message also lands in the middle of an “Xbox Reset” that, according to reports, includes about 3,200 job losses, studio divestments, broader cost-cutting, and proposed closures affecting Ninja Theory. At the same time, Sharma told staff Xbox is coming back from “an all-time low,” returning to growth, and making the right reinvestment decisions.
For people who follow Xbox closely, this one matters because it reframes the company’s approach to original IP. Microsoft reportedly canceled Rare’s Everwild, ZeniMax Online’s Project Blackbird, and Ninja Theory’s Project Mara, while newer teams such as Xbox Labs will explore accessibility, reviving legacy games, and creative tools.
Another part of the plan sits with Xbox’s XP division, which will handle brand extensions such as the Fallout TV series and Minecraft theme parks. All of this is unfolding while Xbox Series X|S sales in the US reportedly are down 33% year over year through August 2026.
You’ll likely see this strategy play out across Xbox Series X|S, PC, and Xbox Game Pass.
Author: Jesús Bosque
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