Xbox CEO Says ‘We Will Not Survive’ Without New IPs

Xbox CEO Asha Sharma reportedly addressed employees at an internal town hall with a stark warning: the company cannot rely on legacy franchises alone to stay relevant. The comments, which surfaced through a transcript shared by Windows Central and reported by PC Gamer, land at a moment when Xbox’s track record on new IP investment looks anything but encouraging.

What Sharma Said

According to the transcript, Sharma told staff: “We’re backing our strongest franchises. I want our great games to become great global billion-dollar franchises. I would also like to see us continue to create enduring new IP. We will not survive if we only revive on the past. We have to find new ways, and courage, to have invention on new IP, that reaches new sets of audiences.”

The remarks signal an awareness inside Microsoft that Xbox needs fresh properties to compete long-term, not just sequels and revivals built on decades-old brand recognition. The messaging, however, sits in sharp tension with decisions made under the company’s broader “Reset” initiative.

A Pattern of Cuts to New and Creative Studios

As PC Gamer notes, the actions Xbox has taken in recent months point in a very different direction from the vision Sharma described. Obsidian Entertainment had multiple projects cancelled and was redirected to work on a Fallout title. Double Fine Productions was made independent. Compulsion Games, the studio behind the newly released South of Midnight, was similarly cut loose. Arkane Lyon has been placed in Xbox’s sights, and Ninja Theory is currently in consultation talks after reported attempts to sell the studio fell through.

Several of the studios affected were either in the process of building new intellectual property or have a history of doing exactly that kind of creative, original work. South of Midnight itself was a brand-new IP. Cutting or releasing those studios while talking about the courage required to build new IP is a difficult contradiction to square.

One Counterpoint: Kojima’s Physint

The one move that fits Sharma’s stated philosophy is Xbox’s acquisition of Hideo Kojima’s action game Physint, which is a new IP. That said, as PC Gamer points out, Physint is being developed by Kojima Productions, a studio with its own established reputation, and Xbox was not the primary funder of the project from the start. It counts as a new IP on the books, but it is not a product of internal studio cultivation.

Whether backing a beloved auteur’s project constitutes the kind of “courageous invention” Sharma described is a question Xbox’s remaining development staff may have left that town hall still asking.

Sources: PC Gamer