Xbox leader Asha Sharma has reportedly declared a renewed commitment to original games, cautioning that the division “will not survive if we only revive on the past.”
According to transcripts obtained by Windows Central from an internal town hall, Sharma outlined a dual strategy: doubling down on massive legacy franchises—such as The Elder Scrolls and Blizzard’s top titles—while actively funding fresh intellectual property aimed at expanding Xbox’s global reach. Addressing Xbox’s recent "return to growth" following a historical low, Sharma noted: “I want our great games to become great global billion-dollar franchises. I would also like to see us continue to create enduring new IP... We have to find new ways, and courage, to have invention on new IP, that reaches new sets of audiences.”
However, Sharma’s rallying cry stands in sharp contrast to Microsoft's recent actions. The company has parted ways with several renowned creative powerhouses, including Double Fine (Psychonauts), Compulsion Games (South of Midnight), and Arkane (Dishonored, Deathloop)—studios celebrated for taking original creative risks. Furthermore, directing inventive developers like Obsidian to handle existing franchises like Fallout leaves little breathing room for wholly original projects outside of high-profile partnerships like Hideo Kojima's Physint.
With widespread cuts at studios like id Software and division-wide consolidation, Xbox’s strategy appears heavily weighted toward safe, established hits. Outside of inXile’s steampunk RPG Clockwork Revolution, truly original AAA releases remain rare on Xbox's upcoming slate. Even developers behind major hits—such as The Coalition following Gears of War: E-Day—face lingering anxiety amid Microsoft’s ongoing, division-wide layoffs, casting doubt on whether Xbox can foster the long-term creative courage Sharma envisions.
What We Know So Far
TBA confirmed that the game is being built for TBA, with improved visuals, new mechanics, and environments designed around the storybook theme.
We wanted to create a world that feels like stepping into a storybook — full of wonder, surprises, and discovery around every corner.
— TBA
