As Xbox faces ongoing challenges in the console market, former PlayStation chief Shawn Layden has highlighted the struggle resulting from the brand’s indecision over exclusivity for its games. His comments focus on Xbox’s need to determine a clear path amid declining Xbox Series X/S sales.
During Phil Spencer’s leadership, Microsoft altered its strategy multiple times, initially favouring exclusives for PC and Xbox, but eventually broadening its reach with titles like Starfield and Halo: Campaign Evolved available on PS5. Layden, speaking with The Expansion Pass podcast, attributed many of Xbox’s difficulties to its shifting focus on exclusives. He argued that Xbox needs to either continue as a platform providing exclusive games or embrace its role as a leading publisher, especially after acquiring Activision and Blizzard. According to Layden, success comes from choosing and sticking to one of these paths.
Transition Under New Leadership
Asha Sharma, appointed as the current Xbox CEO at the beginning of the year, appears to be making strides in addressing these challenges. Layden noted that Sharma is attempting to “right the ship,” albeit uncertain about the specifics of her approach. Her tenure started with a corporate restructuring, which will result in 3,200 job cuts. Additionally, Sharma has taken steps to regain some console exclusives, such as Gears of War: E-Day and Clockwork Revolution, and has signed with Hideo Kojima’s company Physint.
Layden referenced Xbox’s situation as akin to a “Dreamcast moment,” alluding to Sega’s shift from hardware to becoming a major publisher across various platforms. His advice remains clear: Xbox needs to “pick a lane” to move forward effectively.
Future Directions and Commitments
Sharma has refuted any rumours about Microsoft divesting from Xbox, expressing her determination to steer the division in the right direction “whatever it takes.” The company’s recent strategic adjustments focus on bolstering its major franchises, including the likes of Elder Scrolls, Halo, Fallout, and Call of Duty, as well as proceeding with the development of the next-gen Project Helix. The outcomes of these strategies remain to be seen as Xbox embarks on its new course.
Reporting based on coverage first published by eurogamer.net.