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After laying off 3,200 employees and launching the largest restructuring in Xbox history, questions about the brand's future are increasingly common. According to former managers at Sony and Microsoft, the biggest problem is not the cuts themselves but the lack of a clearly defined strategy. They say Xbox cannot at the same time be a console manufacturer, the largest game 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, the discussion around the brand’s future has picked up speed. Former PlayStation boss Shawn Layden believes Microsoft faces a decision that can’t be postponed any longer. He says the company must decide whether it wants to develop Xbox as a platform with exclusive games or focus on being the world’s largest game publisher. Layden emphasizes that the success of Nintendo and PlayStation consoles has long depended on strong titles available exclusively on their own platforms. By contrast, a publisher focused on maximizing sales should offer its games wherever the players are. In his view, the two strategies can’t be effectively combined. It’s this lack of a clear direction that makes many players confused about Microsoft’s current actions. Layoffs and the sale of some studios have only made the problem more pronounced. Increasingly, questions are being asked about what the future holds for the Xbox brand.
Microsoft should clearly define its priorities
A similar position was expressed by Jon Kimmich, a former Microsoft manager who led 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 business all at once. But having so many different goals leads to conflicts and makes it difficult to build a coherent strategy. Kimmich believes Microsoft doesn't have to give up any of those segments, but it should clearly indicate which one is the most important. The other elements should support the main pillar of its business, not compete with it. In his view, the strategy changes so far have only increased the confusion around the brand. The new head of Xbox, Asha Sharma, will have to answer what Xbox should be in the coming years. The future of Microsoft's entire gaming division may depend on that decision.
According to 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 say 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
