Microsoft is making another major change to its gaming business. After months of leadership changes and Game Pass updates, the company is now setting a new direction for Xbox.
A message sent to Xbox teams says the division will focus more on daily active players, while also improving hardware, games, services, and the overall player experience.
Xbox wants to become more affordable, personal, and open as it admits its current model needs work
The message was written by Microsoft Gaming CEO Asha Sharma and Xbox Game Studios head Matt Booty. In it, they were open about several problems inside the Xbox business. They said Xbox needs to do better across its platforms, including consoles, PC, cloud, and services.
Some of the issues mentioned include slow console updates, weak PC presence, high prices, poor developer tools, and basic experience problems. Xbox also wants to improve search, discovery, social features, and personalization. These are important areas because players now expect gaming platforms to feel fast, simple, and easy to use.
The message also said that Xbox is facing pressure from rising development costs and stronger competition from smaller indie studios. In simple terms, the old way of running the Xbox business may not be enough anymore. Sharma and Booty said the model that brought Xbox to this point will not be the same one that takes it forward.
Going ahead, Xbox wants to be built around three ideas: affordable, personal, and open. Consoles will still remain an important part of the business, but Microsoft also wants Xbox games and services to reach more people on PC, mobile, and cloud platforms.
The new main goal, or “north star,” for Xbox will be daily active players. This means Microsoft may care more about how many people are playing every day instead of only focusing on console sales or subscription numbers.
The company has also listed four main areas of focus. For hardware, Xbox wants to keep its current generation consoles strong while also working on future projects, accessories, and a wider ecosystem. For content, it wants to grow major franchises, improve third-party partnerships, and reach new markets such as China and mobile-first regions.
For experience, Microsoft wants to fix basic issues and make Xbox a better place for players, developers, and creators. This includes improving discovery, customization, social tools, and personalization. For services, Xbox plans to make Game Pass clearer, more sustainable, and more useful. It also wants cloud gaming to feel faster and more natural on TVs and cheaper devices.
Another important point is exclusivity. Microsoft is now reviewing how it handles exclusive games, release timing, and even AI. More details are expected later, but this could affect whether future Xbox games continue to arrive on rival platforms like PlayStation and Nintendo systems on day one.
Microsoft is also dropping the Microsoft Gaming name. From now on, the gaming division will once again use the Xbox brand. This brings the company back to a simpler and more familiar identity at a time when it is trying to rebuild trust and set a clearer path for the future.
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