Xbox 'Won’t Survive' Without New IP, CEO Says

Key Points:

• Xbox CEO Asha Sharma emphasized the necessity of creating new intellectual property (IP) for the division’s survival during a recent town hall, stating that relying solely on past franchises is unsustainable.
• Despite this commitment to new IP, Xbox has recently cut or divested from several studios known for developing fresh and innovative games, including Double Fine, Ninja Theory, Compulsion Games, and Undead Labs.
• Xbox is currently focusing on strengthening existing major franchises by shifting development of Halo to Activision and moving Obsidian Entertainment under Bethesda, potentially limiting these studios' ability to create unique new titles.
• The contradiction between Sharma’s call for new IP and the company’s recent studio cuts and restructuring has drawn criticism, as some view these moves as undermining innovation within Xbox’s game portfolio.
• Remaining studios face challenges as well, with id Software downsized significantly and Obsidian possibly redirected towards established franchises, raising concerns about the future of original game development at Xbox.