Home
News
Following reports that significant job reductions could be imminent, CEO Asha Sharma is reportedly intending to accelerate progress on Xbox's major franchises.
As rumors indicating major shifts are underway at Xbox, likely including widespread layoffs, continue to circulate, the console manufacturer's current leader's plans for the future apparently involve releasing new Fallout and Elder Scrolls titles at a faster pace. Asha Sharma's aim to rapidly produce new installments in flagship series reportedly coincides with Microsoft considering spinning off or restructuring Xbox as a subsidiary.
According to The Information, the possibility of transforming Xbox into a separate sub-company still owned by Microsoft is being evaluated alongside options such as forming a joint venture with other partners. If another firm were brought in alongside Microsoft, I'd imagine something similar to Ubisoft's arrangement with Tencent to establish Vantage Studios—the subsidiary currently managing Assassin's Creed, Far Cry, and Rainbow Six—could be possible. That said, I am certainly no expert in business restructuring.
Microsoft currently operates LinkedIn and GitHub as wholly owned subsidiaries, so there is precedent for them choosing to oversee divisions or assets they own in that manner.
As for strategies to enhance Xbox's performance that don't involve altering the division's business structure, Microsoft CEO Satya Nadella and finance chief Amy Hood have reportedly approved a proposal from Sharma to increase spending on developing high-quality games during the fiscal year starting in July. The report indicates Sharma is eager to speed up development of new titles in Xbox's biggest first-party series, with Fallout, The Elder Scrolls, and Halo all mentioned specifically.
It highlights the trajectory Xbox has followed in recent years that 'let's produce new entries in these well-known series we own with massive audiences' can now be presented as a strategic shift. On one hand, specifically regarding Fallout and The Elder Scrolls, Bethesda has been occupied creating Starfield while Fallout 76 and Elder Scrolls Online continue steadily. Starfield did not become the kind of explosive success that can immediately stand alongside its incredibly successful RPG predecessors, but that outcome wasn't predetermined when the studio chose to take a risk on it.
Longer development cycles compared to games of that scale in the past—a widespread industry issue—have made the absence of a major hit far more costly than it might otherwise have been. Skyrim launched less than six years after Oblivion, while it has now been over 14 years of waiting between Skyrim and The Elder Scrolls 6. That is not ideal. Is rushing The Elder Scrolls 6 out the door now due to Microsoft's executives being in profit panic mode ideal? I'd say probably not.
Smaller spin-offs would seem an obvious potential solution to this problem, but so far Xbox has indicated a stronger preference for pursuing remasters, such as last year's re-release of Oblivion. At some point, though, delivering more old content is likely only to intensify the craving for new material. If that new material is noticeably rushed, the diners might not even be satisfied by the main course. Hence all this ominous activity behind the scenes at Microsoft.