Xbox CEO warns division needs new IP amid major restructuring

Xbox CEO Asha Sharma told staff at a recent town-hall meeting that the division will "not survive" without creating new intellectual property. She said the company is backing its strongest franchises and aims to turn its top games into global billion-dollar brands, while also emphasizing the need to develop fresh titles that reach new audiences.

Sharma’s comments come as Xbox undergoes a major restructuring that has included roughly 1,600 job cuts and the divestment of several studios. The company is shifting development of the Halo series to Activision and moving Obsidian Entertainment under Bethesda to work on a new Fallout title.

Critics note that the push for new IP follows the recent shutdown or sale of studios such as Double Fine, Ninja Theory, Compulsion Games and Undead Labs, which had previously delivered original franchises. Remaining studios like Obsidian and id Software have also faced reductions that could limit their ability to produce distinct new games.

"I would also like to see us continue to create enduring new IP. We will not survive if we only revive the past," Sharma said during the meeting.

Analysts suggest that while the call for new IP aligns with industry trends, the company’s current actions raise questions about its capacity to deliver truly original projects.