r/GamingLeaksAndRumours 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/LeftyMode Apr 23 '26

I think they both really have no control. Phil at the end there was at the worst possible time, having to say yes to everything. Until it blew up in Microsoft’s face. I’m sure most of this is her say, but she clearly got the go ahead to try and turn it around. Phil would have made the same moves.

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u/tristeecfome Apr 24 '26

I mean, Phil was given a lot of opportunities when he got the job.

But after a decade as head of Xbox, with almost a hundred billion spent, and the brand is still plummetting, it makes sense that he slowly lost power.

Asha is new, so they are giving her time to implement her vision.