Last week was packed full of Windows 11 and Microsoft news. Since then, Xbox has taken center stage, and it's not all good news.
Xbox CEO Asha Sharma explained in an interview that the company's "business isn't particularly healthy" and warned that "tough decisions" are ahead for Xbox.
Microsoft did ship a big Xbox update after Summer Game Fest and the Xbox Showcase, but it's difficult to focus on that right now.
It's a shame that focus got taken away from games like Halo: Campaign Evolved, Fable, Clockwork Revolution, and Gears of War: E-Day. Normally, I'd be thrilled to wax poetic about classic games while pointing out that the reveal of the new Spyro beat Marvel's Wolverine in views.
But when the head of Xbox says the company became "over‑extended" and that major changes are needed, that's the biggest news of the week.
Biggest News of the Week
Inside Xbox's margin crush: Explaining why Xbox needs to be "reset"
Microsoft's gaming division is facing a margin crisis, although not in a vacuum. The entire industry is struggling to figure out a healthy path forward in a universe where memory has become scarce.
Xbox reaffirms its commitment to console even as it plans to "get better" at PC, mobile
While Microsoft and Xbox plan to explore other platforms, it says it needs to "shore up the platform we have," and vows it won't "move away" from consoles.
Xbox admits it is struggling to explain why players should choose its console
Xbox Chief Strategy Officer Matthew Ball says Xbox has struggled to clearly explain why players should choose its consoles. Ball argued that exclusives are about more than selling games.
Image credit: Microsoft
Xbox preparing major layoffs as part of its turnaround plan
Xbox is reportedly planning significant layoffs next month alongside budget reductions across parts of the business. The news comes as Xbox publicly acknowledges ongoing financial challenges and outlines a broader strategy reset.
Image credit: Dell
Dell and HP users battle reboot loops, and Windows is innocent
Dell and HP PCs were stuck in reboot purgatory after faulty updates. Here's what caused the issue and what the companies are doing to get around it.
Our Managing Editor Jez Corden explained how Xbox got to this point, what external factors contributed to the crisis, and what's ahead for Xbox. Instead of rehashing that, I'll focus on just a single question: "Should Xbox CEOs have term limits?"
Phil Spencer saved Xbox. He rebuilt goodwill among gamers, championed cross-play, and engaged with the community from day one as CEO. Throughout his tenure we saw Xbox grow, games become more accessible through Xbox Game Pass, and classics receive the love they deserve.
Spencer also led Xbox for the years leading up to the current crisis. That's not to say Spencer is entirely at fault for the challenges Xbox faces. It's not as if Spencer drove RAM prices through the roof.
But a lot of the "tough decisions" Sharma will have to make are the result of missed opportunities by Xbox over the last decade. The price hike to Xbox Game Pass and major misses by several games compound issues in an already turbulent industry.
Xbox would not be where it is today without Spencer. The real question is whether Spencer should have stepped aside after saving the brand, and whether Sharma should do the same once her reset is complete.
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