•As Xbox continues a major restructuring that has led to at least 1,600 job cuts and divestment from several studios, the company’s CEO Asha Sharma said in internal communications that the division will “not survive” without new intellectual property — a statement critics call hollow given how thoroughly Microsoft has dismantled many of the teams behind its freshest franchises.
Sharma made the remarks during an Xbox town hall last week. Transcripts of the talk were obtained by Windows Central, which reported that they were shared internally in violation of company policy.
“On content, I think this is probably the thing that you are all seeing the most about as we’re making a lot of changes,” Sharma reportedly said. “We’re backing our strongest franchises. I want our great games to become great global billion-dollar franchises.”
Asha Sharma, Xbox CEO
As part of the restructuring, Microsoft is moving development of the Halo series to Activision, the Call of Duty publisher. Obsidian Entertainment is being relocated under Bethesda as it works on a new Fallout game.
Yet Sharma’s emphasis on original work appears at odds with recent decisions. She reportedly added: “I would also like to see us continue to create enduring new IP. We will not survive if we only revive the past. We have to find new ways, and courage, to have invention on new IP, that reaches new sets of audiences.”
The statement rings ironic given Microsoft’s decision to stop funding Double Fine, Ninja Theory, Compulsion Jocuri, and Undead Labs — all studios that created original IP for the company. Three of the four have completed management buyouts to avoid shutdowns; Ninja Theory is currently the exception.
The cut studios produced notable original work: Double Fine released Kiln, a multiplayer action game centered on pottery, and Keeper, where players control a sentient lighthouse. Ninja Theory created the Hellblade series, while Undead Labs worked on State of Decay. Compulsion Jocuri developed South of Midnight, an action-adventure set in the American South with stop-motion-inspired visuals.
Arkane Studios, which is currently negotiating its future with Microsoft, delivered Deathloop and is working on Marvel’s Blade.
For studios that were not cut, prospects appear similarly constrained. Moving Obsidian under Bethesda suggests it will focus on Fallout and Elder Scrolls sequels rather than unique titles like Pentiment. Microsoft reportedly slashed id Software to half its former size, making future Doom follow-ups a challenge.
In essence, Sharma’s words do not align with the company’s actions. While it is possible she means new live-service or multiplayer games reaching millions of players when referencing “new IP,” her comments read as hypocritical given Microsoft’s recent moves.
1,600 job cuts
divestment from several studios
Windows Central
moving development of the Halo series to Call of Duty publisher Activision
Obsidian Entertainment is being moved under Bethesda
Ninja Theory is currently the odd one out
Double Fine is known for out-there concepts
South of Midnight
which is currently in negotiations with Microsoft over its future
slashed id Software to half of its former size
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