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Following the dismissal of 3,200 employees and the start of the biggest restructuring in Xbox's history, questions about the brand's future are becoming increasingly common. According to former Sony and Microsoft managers, the biggest problem is not the cuts themselves but the lack of a clearly defined strategy. They say Xbox cannot simultaneously be a console manufacturer, the largest games publisher and a subscription service.
Former industry heads point to Xbox's biggest problem
After the announcement of the largest restructuring in Xbox's history, discussion about the brand's future has picked up pace. Former PlayStation boss Shawn Layden believes Microsoft faces a choice that can no longer be postponed. According to him, the company must decide whether it wants to develop Xbox as a platform with exclusive titles, or focus on the role of the world's biggest games publisher. Layden emphasises that the success of Nintendo and PlayStation consoles has long been built on strong titles available exclusively on their own platforms. By contrast, a publisher focused on maximising sales should offer its titles wherever players are. In his view, those two strategies cannot be effectively combined. It is precisely this lack of a clear direction that means many gamers do not understand Microsoft's current moves. Layoffs and the sale of some studios have only further highlighted this problem. Increasingly, questions are being raised about what the future holds for the Xbox brand.
Microsoft should clearly define its priorities
A similar view was expressed by Jon Kimmich, a former Microsoft manager responsible for the development of the first Xbox. According to him, the company is trying to develop Game Pass, consoles, cloud gaming, the PC store and its publishing arm all at the same time. Pursuing so many different goals, however, leads to conflicts and makes it harder to build a coherent strategy. Kimmich believes Microsoft does not need to give up any of those segments, but it should make clear which one is the most important. The others should support the main pillar of the business rather than compete with it. In his view, the strategy changes so far have only increased the confusion around the brand. Xbox's new head, Asha Sharma, will have to answer the question of what Xbox should be in the years ahead. The future of Microsoft's entire games division may depend on that decision.
In the view of former Sony and Microsoft managers, Xbox's biggest challenge right now is not 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 such a decision, the brand may continue to struggle with an identity crisis.
source: wccftech
