Xbox CEO Asha Sharma Warns Existing Franchises Aren't Enough, Pushes for New IP

Xbox CEO Asha Sharma wants Microsoft to turn its biggest gaming properties into billion-dollar franchises while continuing to develop new intellectual properties. The strategy aims to strengthen established brands without making Xbox entirely dependent on existing games.

During a recent Xbox Town Hall, Sharma emphasized that franchises such as Fallout, Call of Duty, World of Warcraft, and Candy Crush remain central to Microsoft’s gaming business. However, she warned that relying exclusively on these properties would put Xbox’s long-term future at risk.

According to Windows Central, which obtained transcripts of the meeting, Sharma wants Xbox to build enduring new franchises alongside its established billion-dollar businesses.

Xbox wants billion-dollar franchises and fresh ideas

Microsoft plans to expand its most successful gaming properties into larger global franchises while developing new games that can reach different audiences.

Sharma sees opportunities in casual gaming, particularly through King and Candy Crush, alongside Microsoft’s traditional console and PC franchises.

However, creating successful new IP requires sustained investment, something that could prove challenging given Microsoft’s recent changes to its gaming division.

Xbox has undergone major restructuring in 2026, including thousands of layoffs, studio closures, and divestitures.

Studios such as Ninja Theory, Double Fine, and Compulsion have reportedly faced closures or separation from Microsoft. These developers have historically focused on original games, raising questions about how Xbox will balance cost reductions with its ambitions to create new franchises.

Sharma also indicated that Microsoft intends to further simplify its gaming studio operations.

Xbox faces declining sales and growing pressure

The new strategy comes as Microsoft’s gaming hardware business faces significant challenges.

Xbox hardware sales have fallen 33% in the US through August 2026 compared to the same period last year, reaching a historic low in Circana’s tracking.

Rising component costs and hardware shortages have also pushed console prices higher, making it harder for Microsoft to compete.

Meanwhile, Xbox’s multiplatform strategy has raised concerns about the value of owning an Xbox console. Microsoft has reportedly been reconsidering the importance of exclusive releases, with games such as Gears of War: E-Day and Forza Horizon 6 playing a role in its broader plans.

Microsoft CEO Satya Nadella has also acknowledged that Xbox needs to change its business model despite having a strong lineup of games.

Nevertheless, Microsoft remains optimistic about its gaming business, and Asha Sharma has projected a return to Xbox growth in fiscal year 2027.

For Sharma, the challenge is balancing investment in established franchises with the development of new games while Microsoft continues to cut costs and restructure its gaming operations.