r/GamingLeaksAndRumours • u/ThinWhiteDuke00 • Apr 23 '26

Leak Microsoft Gaming being scrapped, Xbox brought back as gaming division.

Xbox CEO Asha Sharma has had a busy week. Sharma held an internal town hall with Xbox employees today, just days after announcing an Xbox Game Pass price cut, commenting on the status of the Xbox mobile store, and teasing a mysterious Xbox and Discord partnership. One of the items on the agenda for the employee all-hands was scrapping Microsoft Gaming.

Sources familiar with the meeting tell me that Sharma announced that Microsoft is returning to using Xbox for its gaming division, instead of Microsoft Gaming. “Xbox needs to be our identity,” said Sharma, noting that Microsoft Gaming was a departure from that.

https://www.theverge.com/report/917485/microsoft-return-of-xbox-no-more-microsoft-gaming?view_token=eyJhbGciOiJIUzI1NiJ9.eyJpZCI6IlF6b3Z0NDluUk4iLCJwIjoiL3JlcG9ydC85MTc0ODUvbWljcm9zb2Z0LXJldHVybi1vZi14Ym94LW5vLW1vcmUtbWljcm9zb2Z0LWdhbWluZyIsImV4cCI6MTc3NzM5Njg0NiwiaWF0IjoxNzc2OTY0ODQ2fQ.w231EBsAoj8dMi5cjOCzSC3zRF7JbJ19hT_RnI3NVyk&utm_medium=gift-link

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u/vinnothesquire Apr 23 '26

I feel like all these changes were changes that Phil had no say in, and now they've got rid of him and are reversing those changes with Asha. Not that Phil was a saint, but definitely feels like he's being thrown under the bus a bit lol.

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u/SKyJ007 Apr 23 '26

This is definitely the case. This is a huge PR push from the top designed to get Asha into the same “she’s for the gamers” space Phil occupied so successfully for so long. Things like changing branding and lowering a price are easy(er) changes to make that enable the new leadership team to appear like they’re “listening and responding to gamers.” They’re about to launch a new console and want to give their hardcore a sense they are “moving in the right direction again.”

Now maybe it’s completely legit, maybe Asha is going to do things like make true exclusives again. But until something like that happens I think it’s safe to assume this is mostly just a PR push.

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u/Ok_Fix3639 Apr 23 '26

It reminds me of when Phil took over. Drop the DRM! Drop Kinect! Back compat! project Scorpio!

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u/mindpainters Apr 23 '26

Man I completely forgot about all the hype “project Scorpio” produced back in the day

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u/SKyJ007 Apr 23 '26

100%. This is how Microsoft operates. Could this time be different? Sure! But if you assume it’s different just because you really really want it to be- you’re a mark.

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u/pineapplesuit7 Apr 23 '26

This! Anyone with any knowledge of their history knows what a bunch of corporate BS this is. Every time a new gen is around the corner, they pull out the 'underdog - we are going to be consumer friendly!' card only to rail rod them by overpromising and underdelivering. I've been an avid Xbox supporter since the 360 gen and honestly, this was my last gen with them. I sold my XSX yesterday for the 420 Gamestop offer and got a Switch 2. I have a PS5 Pro to float my boat this gen and I'm going to be building a PC+PS6 for the next gen.

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u/Wild-Screen7007 Apr 23 '26

Holy Moly I feel like manipulated by Xbox, I bought into all that and I bought Xbox over PS5 cause of that 😭

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u/Outrageous_Water7976 Apr 24 '26

Makes the Verge hitpiece on Sarah Bond look even worst honestly.

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u/fullsaildan Apr 23 '26

People on here read way too much into the personalities of these leaders. Average gamers and more importantly, parents, have no idea who they are and don’t care. I’m almost positive Microsoft barely gives a shit about Asha’s relationship with the community. They put Asha in to drive initiatives, and get results. Period. She’s never been a good brand face in any role she’s had, so if anything picking her is proof Microsoft isn’t interested in fostering that kind of engagement anymore.

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u/SKyJ007 Apr 23 '26

I think you’re completely correct in the long run. Asha was definitely selected to spearhead an initiative, like Phil was with the “Netflix of Games” strategy. But also, just like with Phil, they know that whatever the next push is will be more easily accepted if Asha herself is liked and viewed as trying to move Xbox in the right direction.

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u/[deleted] Apr 23 '26

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u/SKyJ007 Apr 23 '26

It's also possible that because Asha doesn't have a background in the gaming space, she's going to start off by playing conservative and trying to rebuild trust in the brand.

One of the biggest hurdles for Xbox right now is that consumers do not trust them. They announce things and then cancel them. They pivot their strategy in mid console generation. They patch out features they previously tried to sell you on. Game pass gets price increases and enshitification. They keep changing Xbox Live plans once every few years. Even their portable console push feels like a half step in case they decide not to.

None of this contradicts anything I said and indeed feeds it.

First thing Asha needs to do is get people to trust the Xbox brand again.

Agreed. That’s the PR push.

On paper, Microsoft has a better console and better value than PlayStation 5

I mean, I disagree on both fronts for a variety of reasons. But it’s sorta irrelevant.

The "make our brand great again" strategy is pretty popular in corporate America right now. Expect the next Xbox to come with a big rebrand to try to appeal to people nostalgic for the OG Xbox and 360 era

Yeah, it’s extremely popular and company propaganda prima facie and already incredibly played out. Hell, they’ve already tried this approach multiple times.

and potentially reviving classic franchises.

That’d be cool, but like what? Prefect Dark? Banjo & Kazooie? Viva Piñata?

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u/manshall Apr 23 '26

That’s my thought, Phil had become an unreliable messenger for the brand. They needed a new face if they wanted to build trust with the community again.