Xbox’s latest leadership is betting that nostalgia for simpler gaming can win back players lost during a push for subscriptions and higher console prices.
On Thursday, Xbox CEO Asha Sharma and chief content officer Matt Booty sent an internal memo to staff announcing the Xbox division would drop the “Microsoft Gaming” brand and return to being called simply “Xbox,” according to sources familiar with the communication.
The move aims to separate the consumer-facing gaming brand from Microsoft’s broader enterprise and government-focused portfolio, which Sharma described as resembling a “Charlie Kelly conspiracy board” of contracts.
Sharma told game journalist Stephen Totilo in an interview that the company is reinvesting in the Xbox Series S and X as first‑generation consoles again, with regular updates to the operating system.
According to The Verge’s Tom Warren, those updates could arrive every two weeks through the end of the year, with teams meeting daily on a project codenamed Helix.
The Xbox Series X digital edition now starts at $600, $150 more than its 2020 launch price, making it cost‑equivalent to the PlayStation 5 after recent Sony price hikes.
Despite the price increase, Xbox trailed PlayStation 5 in console sales both before and after the “apocalyptic” price changes of 2025, Sharma acknowledged.
As part of the turnaround, Xbox is lowering the price of Game Pass Ultimate, a move that drew praise from gamers even though it means new Call of Duty titles will no longer be available on the service at launch.
Sharma said the goal is to grow the subscription service by making it affordable and ensuring players stay longer and feel happy, noting that many who joined for Call of Duty in 2024 did not remain subscribed.
For more on this story, see Microsoft Cuts Xbox Game Pass Ultimate Price by $7, Delays New Call of Duty Releases by a Year.
Shortly after her interview with Totilo, a leak reported by The Verge revealed Xbox is exploring a 50‑game Game Pass “Starter Edition” bundled with Discord’s Nitro service.
Sharma and Booty said they are still conducting an internal cost‑benefit analysis on whether to maintain console exclusivity, acknowledging that growth and profitability depend on increasing daily active users.
In a separate message to global employees, Xbox Wire highlighted that the platform now reaches over 500 million players worldwide but admitted frustrations over infrequent feature drops, weak PC presence, and fragmented core experiences like search and social.
The internal communication noted that a new generation of players expects to create and socialize together, not just play, and that Xbox must evolve beyond the model that brought it success.
Xbox’s leadership framed the future as one where the platform becomes “where the world plays and creates,” signaling a shift from pure consumption to user‑generated content and cross‑platform engagement.
Why is Xbox dropping the “Microsoft Gaming” brand?
Xbox leadership said separating the gaming division from Microsoft’s enterprise‑focused brands will help it reconnect with players as a dedicated consumer brand, which they describe as the company’s last fully consumer‑facing property.
How does the price of the Xbox Series X compare to its launch?
The Xbox Series X digital edition now starts at $600, which is $150 more than its 2020 launch price, bringing it to cost parity with the PlayStation 5 after Sony’s recent price increases.
What change is coming to Game Pass regarding Call of Duty?
New Call of Duty titles will no longer be included in Xbox Game Pass Ultimate at launch and will only become available on the service one year after their release.
What is Project Helix, and how often will Xbox consoles be updated?
Project Helix is an internal initiative to reinvest in the Xbox Series S and X, with teams meeting daily and planning biweekly operating system updates through the end of the year, according to sources including Tom Warren of The Verge.
