Xbox has faced a lot of challenges recently. Though it had some great successes in the past, especially when online gaming first became popular, the brand has struggled lately. A series of disappointing announcements and negative media coverage have significantly damaged Xbox’s reputation.
How did Microsoft’s Xbox go from being a dominant force in gaming to facing an uncertain future? Before the Xbox One, the original Xbox was the clear leader, with Sony as a distant competitor and Nintendo finding success with innovative motion controls. This allowed the Xbox 360 to thrive, releasing popular and critically acclaimed games like Halo 3, Gears of War, and Fable 2. Initially, the 360 significantly outsold the PlayStation 3 and seemed set to maintain that lead. However, things began to change. Sony started releasing highly-rated exclusive titles like The Last of Us and Uncharted 2, while Microsoft’s game franchises lost momentum. The expensive and time-consuming development of the Kinect also pulled focus from Microsoft’s core gaming strengths. These issues continued with the Xbox One, and now, as the Xbox Series X|S reaches the end of its lifespan, there’s real doubt about whether Xbox will continue to compete in the console market.
The Xbox Series X|S Has Failed to Make Up for Microsoft’s Exclusives Drought
Whether you like exclusive games or not, they clearly affect which consoles people buy and how popular those consoles become. Xbox demonstrated this in 2001 with Halo: Combat Evolved, which brought many players to the original Xbox. However, over time, Xbox seemed to focus less on exclusives, letting popular franchises like Fable fade and putting series like Halo on hold. At the same time, Sony and Nintendo released critically acclaimed exclusive titles such as Bloodborne, Uncharted 4, and Breath of the Wild. These games made PlayStation and Nintendo consoles more appealing, while the Xbox One suffered by missing out on some of the most popular modern games, ultimately making it seem less desirable.
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When the Xbox Series X|S launched, it looked like Microsoft was shifting its strategy by buying up many game studios, including big names like Bethesda and Activision Blizzard (the creators of Call of Duty and World of Warcraft). While this led to some good exclusive games for Xbox, like Hi-Fi Rush and Indiana Jones and the Great Circle, none of them were quite as impactful as major hits like God of War Ragnarok or Super Mario Odyssey. Recently, Xbox has also started releasing its first-party games on other platforms, which means the number of games you have to play only on Xbox is quickly shrinking.
Microsoft’s Closure of Tango Gameworks and Arkane Austin
A major setback for the Xbox Series X|S was the unexpected closure of several studios in June 2024, including Tango Gameworks and Arkane Austin. These closures could be remembered as a turning point for Xbox. Tango Gameworks, known for critically acclaimed games like The Evil Within and HiFi Rush, had become a key asset for Xbox, especially after the disappointing performance of the Xbox One. While the exact reasons for the studio’s closure are still unknown, many believe it followed the departure of Shinji Mikami. This decision seems particularly questionable, given the potential of the HiFi Rush series and the talented team at Tango, which could have significantly benefited Xbox moving forward.
Although Xbox closing Tango Gameworks was unexpected, the studio still exists. Just a few months after the closure, South Korean publisher Krafton bought Tango Gameworks.
The closure of Arkane Austin is largely blamed on the poor reception of their game, Redfall. It launched with problems similar to Cyberpunk 2077, but unlike that game, Redfall never improved. It seems harsh that one unsuccessful game would lead to the shutdown of a studio with such a strong history, especially considering Arkane Austin created excellent games like the 2017 immersive sim Prey, which many consider one of the best of all time. Like Tango Gameworks, Arkane Austin had the potential to continue creating successful games for Xbox for years to come, and keeping them around would have significantly helped improve Xbox’s often-criticized public image.
The Increase in Cost of Xbox Game Pass
It’s debatable whether this decision marks a new phase for the Xbox Series X|S, as it hinges on understanding Microsoft’s overall plan for Game Pass. Many believe last year’s Game Pass price increase was a deliberate strategy, mirroring the approach of services like Spotify and Netflix. These platforms initially prioritized gaining a large user base, even operating at a loss, before raising prices once they had established a significant customer base. However, the price increase – particularly the jump from $19.99 to $29.99 for Game Pass Ultimate – seems to have negatively impacted the platform’s popularity, with reports that Microsoft’s cancellation page temporarily crashed after the announcement.
Asha Sharma, the new head of gaming at Microsoft, has indicated she’s reviewing the value of Game Pass, acknowledging it’s become pricey. With PlayStation Plus emerging as a strong competitor, the recent price hike hasn’t helped. While Game Pass remains a good option, particularly for PC gamers, it’s no longer the clear leader in value that it once was.
The Xbox Series S Has Dragged the Series X Down
Microsoft hasn’t just faced challenges with its software during the Xbox Series X|S generation. While splitting the console line into the powerful Series X and the more affordable Series S seemed smart – particularly with Microsoft’s focus on game streaming – it’s proven difficult in practice. Because Microsoft pledged that both consoles would have the same features, developers have struggled to bring their games to Xbox, and some are now reportedly skipping Xbox ports entirely due to the Series S’s technical limitations.
A recent example of this happened with the release of Baldur’s Gate 3. The Xbox version was delayed because the developers, Larian Studios, had trouble getting the split-screen co-op feature to work well on the less powerful Xbox Series S. In the end, the game launched on Xbox without split-screen, despite initially promising it would be included, and Xbox players still had to wait to play the highly anticipated game. Ultimately, trying to support the Series S led to Xbox owners receiving a less complete experience.
While it took almost two years after its release, Baldur’s Gate 3 now supports split-screen play on the Xbox Series S.
Honorable Mention: The ‘This is an Xbox’ Campaign
Looking back, the “This is an Xbox” campaign is a tough one for me. It’s hard to say it was a flat-out mistake, but it definitely didn’t seem to help the brand, that’s for sure. I get that focusing on Xbox’s cloud gaming makes sense – making games more accessible is a smart move and one of their better ideas recently. But the way they phrased the campaign, with that strong “This is an Xbox” message, honestly felt like they were announcing the console was becoming obsolete, like Microsoft was saying hardware isn’t even important anymore. It just didn’t quite land for me.
It seems Sharma is trying to shift Xbox Gaming back to its original focus during her leadership. She’s stated she wants to refocus on Xbox hardware and expand the number of people using Xbox consoles. While challenges like parts shortages exist, she appears determined to address what she sees as a weakening of the Xbox brand caused by the recent push into software-focused initiatives like ‘This is an Xbox’.
As a long-time Xbox fan, it’s been tough watching them struggle lately. Honestly, I think their problems aren’t unique – the whole gaming industry is going through a rough patch with studio closures and games becoming super expensive to make. You see similar issues with PlayStation and Nintendo, but they seem to be handling it better. Right now, Xbox is definitely behind in sales compared to the PS5 and the upcoming Switch 2, and it’s frustrating to watch. I’m still hopeful for the future, but it’s up to the Xbox team to really figure out what went wrong with the Series X|S and learn from those mistakes if they want to get back on top.
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2026-04-18 14:08