Image credit: Microsoft
Xbox has been around for more than two decades and is still struggling to gain a strong foothold in the market. Despite making huge studio purchase gambles, Team Green is nowhere near the competition. The hardware is there, it works, it delivers, and yet people still prefer other home consoles across regions.
With big executive shakeups and dire statements from the Xbox co-founder, the future of Xbox seems bleak. Xbox’s sales are down even in its home turf, indicating negative consumer perception despite marketing pushes. Xbox needs to bounce back to the glory days of the Xbox 360 to survive in a nearly hostile console market.
Leadership shake-up
Recently, long-time Xbox figure Phil Spencer retired, quickly followed by Sarah Bond’s resignation. Asha Sharma is the new head of Xbox, formerly Microsoft’s head of Core AI. Sharma has limited gaming experience, but her first memo outlined three priorities: great games, returning to roots, and shaping the “future of play.”
Fans were quick to discover Sharma’s Xbox Gamertag and analyse her recent game history. The account is just over a month old and has 30 different games played in a short span. Many players directly accused her of faking her history on X. Sharma explained that a single Gamertag is shared across accounts and devices, and that the progress is not hers alone.
“Faking would be a terrible idea and wouldn’t work,” stated Sharma. “I created it recently to learn and understand this world,” she further explained. Apart from gamers on socials, Xbox’s co-founder, Seamus Blackley, claims that Sharma is brought in to “sunset” the Xbox.
What’s in the box?
Xbox is long rumored to shift to a “console-PC hybrid” model for the next generation. Sarah Bond previously stated that the next-gen Xbox would offer a premium, high-powered experience. Further reports claim that the next Xbox will run full Windows with a console-like user interface.
The rumors caught fire further when Xbox launched the ROG Xbox Ally handheld, which runs Windows with a streamlined controller-optimised UI. Ex-CEO Phil Spencer previously said people should look to the Xbox Ally to see where Xbox is headed. Xbox would take a back seat to hardware and let its partners whip up multiple versions of the next Xbox.
However, the recent RAM and storage shortages mean that we are stuck with the current Xbox Series X/S for a while. PlayStation is also reportedly delaying the release of PlayStation 6 until late 2028. Xbox needed the shot in the arm that only new hardware could have delivered.
The best deal in gaming?
Xbox Game Pass was widely considered the “best deal in gaming” back when it launched in 2017. After several price increases, it’s still a good deal, but it is prohibitively expensive for many loyal Xbox fans. The top-tier Game Pass Ultimate now costs $30, double the launch price. Xbox still aims to reach 100-110 million subscribers by 2030.
Xbox recently went big with its Xbox Cloud Gaming marketing, claiming “Everything is an Xbox.” Cloud gaming is viable in only a select few regions, and even there, it doesn’t work flawlessly everywhere. So, Xbox going completely cloud-based for the next generation is out of the question. It’s a nice supplement to the hardware, but it is not ready to completely replace physical hardware.
What’s next for the next-box?
Xbox hardware sales plummeted in 2025. The UK saw sales drop by 39%, and even Xbox’s home turf, the US, saw a sharp decline. The Xbox Series X and S consoles have sold approximately 34 million units since launch. The number pales in comparison to 60 million PlayStation 5 units and 155 million Nintendo Switch units sold.
Exclusives have also dried up with the biggest Xbox franchises making the jump to PlayStation. Gears of War, Forza Horizon 5, and Grounded are all on PlayStation. Fable and Microsoft Flight Simulator 2024 are soon to follow. PC already sees day-one Xbox releases on Microsoft Store and Steam.
The hardware itself has seen two price increases in the US. The console now costs $650, up from its $500 launch price over five years ago. The more powerful PlayStation 5 Pro sits at $750 in comparison. Xbox needs serious restructuring, fresh killer software to drive sales, and a price revaluation for both hardware and Game Pass if it wants to remain a console player.
FAQs
Not at this time, it seems. Xbox leadership remains committed to delivering Xbox consoles and releasing multiplatform games.
No, despite the “Xbox anywhere” campaign, Xbox Game Pass is not available on PlayStation, Nintendo Switch, or Valve’s Steam Deck.
No, the Asus ROG Xbox Ally is a handheld PC that can only run games released for PC. It cannot natively run or emulate Xbox games.
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