What Xbox's Struggles Mean for Your Game Pass and Console Fu…

For players, Xbox's struggles could mean fewer exclusives and changes to Game Pass, while the industry watches to see if Sharma's long-term plan can turn things around.

For players, Xbox's struggles could mean fewer exclusives and changes to Game Pass, while the industry watches to see if Sharma's long-term plan can turn things around.

Key points - Circana analyst Mat Piscatella says Xbox's recent efforts haven't positively impacted sales or engagement. - Making Gears of War: E-Day exclusive to Xbox hasn't boosted hardware sales, Piscatella says. - Removing new Call of Duty games from Game Pass led to lost engagement with no benefit, per Piscatella. - Xbox CEO Asha Sharma aims for growth by fiscal year 2027 and to beat Sony and Nintendo by mid-2030. - Xbox currently has about a 3% profit margin, compared to 9.9% for PlayStation and 16% for Nintendo.

Timeline - February 2025: Asha Sharma takes over as Xbox CEO. - 2027: Target for Xbox studios to return to growth and match rival profit margins. - Mid-2030: Goal for Xbox to beat Sony and Nintendo in profit margins.

FAQ

Q: What did the analyst say about Xbox's recent moves? A: Mat Piscatella said none of Xbox's recent efforts, like the disc-to-digital program or making Gears of War: E-Day exclusive, have had a positive impact on sales or engagement.

Q: Why did removing Call of Duty from Game Pass hurt Xbox? A: According to Piscatella, the Call of Duty franchise lost a ton of engagement due to Modern Warfare 4 being removed from Game Pass, and Xbox saw no benefit from the move.

Q: What is Xbox CEO Asha Sharma's long-term plan? A: Sharma aims to return studios to growth by fiscal year 2027, match Sony and Nintendo's profit margins by 2027, and beat them by mid-2030, while expanding Xbox games into film, TV, and other areas.