As painful as it is for fans to admit, it’s time to face reality: the Xbox brand is dying. And if the so-called console war still exists on someone's head, it's not Xbox's biggest problem right now. Why? Let’s break it down.
Where Are the First-Party Games?
Xbox Studios hasn’t released a truly great first-party title, and nothing has scored above a 9 on Metacritic or OpenCritic. Avowed, while a solid effort from Obsidian, sits at 80. South of Midnight, Compulsion Games’ latest IP after We Happy Few, received a lukewarm reception.
What happened to the heavy hitters like Gears of War, The Elder Scrolls VI, or even Halo? Development appears stagnant, and there seems to be a serious mismanagement of priorities on Xbox’s part.
Xbox Game Pass Is Keeping It Alive
First-party games launching on Xbox Game Pass day one is great for gamers, but less so for long-term profit growth. Game Pass is clearly the brand’s main focus now, and while the model is appealing for players who want affordability and access, it may also signal a bleak future for the company.
Relying on subscriptions is a double-edged sword, especially when major titles are essentially free with Game Pass. Those subscription fees don’t always recoup development costs, which puts pressure on the sustainability of big-budget first-party games.
Xbox Game Pass can't rely too much on lightning in a bottle titles like Sandfall Interactive's Clair Obscur: Expedition 33, which sold 3.3 million copies in 33 days.
Entering Steam Could Cannibalize Sales
One strange decision Xbox made was integrating Steam and Epic Games into the Xbox App, turning it into more of a mini-launcher. While this may seem like a convenient quality-of-life feature, it could also backfire by cannibalizing Xbox’s own sales.
The brand’s move away from exclusivity is noble in promoting accessibility, but it also means players will likely opt for more popular launchers like Steam, leaving Xbox with fewer direct profits.
Weak Leadership From Phil Spencer
Phil Spencer has made some positive contributions as Microsoft Gaming’s CEO, but his leadership lacks the clarity and direction the brand desperately needs. With Xbox’s reputation steadily declining, the company has just seen another wave of major layoffs, a symptom of mismanagement and overextension of the brand.
There’s no clear focus, no prioritization, and seemingly no long-term vision.
Xbox Series S Is Holding Next-Gen Back
The Xbox Series S isn’t a great console to represent Xbox’s next-gen evolution. It lags behind with some of the weakest hardware features in modern gaming, and it doesn’t feel like a true step forward for the brand’s future. Even Nintendo Switch 2 has more power than the Series S.
Its underpowered specs are limiting, big titles are skipping the platform altogether due to the optimization headaches the Series S presents. While some games run just fine, major developers are starting to avoid the Xbox ecosystem because of how difficult it is to work around the Series S’s limitations.
Buying Activision, Yet Still Multi-Platform
One of the most glaring issues is Microsoft’s acquisition strategy. Take the massive Activision purchase, many expected Xbox exclusives, but new releases remain multi-platform. What’s the end goal here?
At this point, it seems like Xbox is bursting at the seams with questionable decisions. Unless something changes fast, it may only be a matter of time before the brand implodes entirely.
The future honestly looks bleak for Xbox Gaming, and if things continue down this path, it could put the job security of its talented team at risk, all because of how deeply mismanaged everything has become.
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