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After laying off 3,200 employees and launching the biggest restructuring in Xbox's history, questions about the brand’s future are becoming more frequent. According to former Sony and Microsoft managers, the biggest problem isn't the cuts themselves but the lack of a clearly defined strategy. In their view, Xbox can't at the same time be a console maker, the largest games publisher and a subscription service.
Former industry heads point to Xbox's biggest problem
After the announcement of the biggest restructuring in Xbox's history, debate about the brand's future has picked up pace. Former PlayStation boss Shawn Layden believes Microsoft faces a choice that can no longer be put off. He says the company must decide whether it wants to develop Xbox as a platform built around exclusive titles, or focus on being the world's biggest games publisher. Layden stresses that Nintendo's and PlayStation's console success has long been built on strong titles available exclusively on their platforms. Meanwhile, a publisher focused on maximising sales should make its games available wherever players are. In his view, those two strategies cannot be effectively combined. It's precisely the lack of a clear direction that means many players don't understand Microsoft's current actions. Layoffs and the sale of some studios have only made that problem more apparent. So there are growing questions about what the future holds for the Xbox brand.
Microsoft should clearly define its priorities
Jon Kimmich, a former Microsoft manager responsible for the development of the first Xbox, expressed a similar view. He says the company is trying to develop Game Pass, consoles, cloud gaming, a PC store and a publishing arm all at once. Pursuing so many different goals leads to conflicts and makes it harder to build a coherent strategy. Kimmich believes Microsoft does not have to abandon any of these segments, but it should make clear which one is the most important. The other elements should support that main pillar, not compete with it. In his view, the recent shifts in strategy have only added to the confusion around the brand. Xbox's new head, Asha Sharma, will have to answer what Xbox should be in the years ahead. The future of Microsoft's entire gaming division could depend on that decision.
Former managers from Sony and Microsoft say Xbox's biggest challenge right now isn't layoffs or restructuring but the lack of a clearly defined strategy. Experts believe Microsoft should decide whether its priority will be developing its own platform or building its position as a global games publisher. Without that decision, the brand may continue to struggle with an identity crisis.
source: wccftech
