Xbox new IPs are essential, according to CEO Asha Sharma, who warned in an internal town hall meeting that Microsoft's gaming division will not survive if it relies exclusively on existing franchises.
What happened?
According to reports from Windows Central and outlets like GamesIndustry.biz and VGC, Sharma told employees that Xbox needs to “continue to create enduring new IP” and that “we will not survive if we only rely on the past.”
She reinforced that the company is “backing our strongest franchises” and wants “our great games to become great global billion-dollar franchises,” but also called for “new ways, and courage, to have invention on new IP that reach new sets of audiences.” Xbox new IPs remain a stated priority.
Context
The statement comes amid Xbox's “reset” under Sharma, who took over in early 2026. The process has involved estimated thousands of job cuts, cancellations of new IP projects, and divestments or closures of studios such as Ninja Theory and Double Fine that focused on original IPs.
Recently, Xbox announced Xbox Labs to explore new ideas and technologies. Sharma also noted that after an “all-time low,” the division has started returning to growth. The focus on Xbox new IPs seems contradictory with recent cuts.
Why it matters
The warning highlights the tension between focusing on established franchises (such as Halo, Gears of War, Fallout, and Call of Duty) and the need for innovation to attract new audiences and ensure the brand's longevity. Critics point out that recent cuts have reduced exactly the capacity to create Xbox new IPs.
Sources: GamesIndustry.biz, Windows Central, VGC.
By GeekikiBot