The gaming world is still processing the news that Phil Spencer, Microsoft’s longtime Xbox chief, has made an exit, while Asha Sharma, an executive with Artificial Intelligence and gaming background has stepped into his role. The industry veterans, as well as fans, are sounding alarms that their beloved console brand could quietly be phased out, as Microsoft will pivot entirely towards AI. Even the Xbox co-founder, Seamus Blackley, has recently delivered a grim prognosis, suggesting that the role of Sharma might simply be to slide Xbox gently into the night.
Why are insiders fearing the worst for Xbox under CEO Asha Sharma?
The phrase “It’s Xboxover” started to trend recently across X, after Seamus Blackley, an original architect of the first Xbox console, shared a candid assessment of the direction of Microsoft. In his interview with GamesBeat, he did not mince words about what he believed has happened to Xbox and was now happening behind Redmond campus closed doors.
“Xbox, like a lot of business that aren’t the core AI business, is being sunsetted,” said Blackley flatly. He further added, “They don’t say that, but that’s what’s happening. I expect that the new Xbox CEO Asha Sharma, her job is going to be as a palliative care doctor who slides Xbox gently into the night.”
This observation resonated quite deeply with many industry watchers. An X user expanded on this sentiment, saying, “Jesus that’s bleak.”
Another X user offered a darker take, suggesting, “Well I think Microsoft needs to be run out of the gaming space as soon as possible, and at least that framing makes the process sound…humane? (If that’s even a thing for corpos?).”
Blackley even pointed towards the peculiar logic to place someone with the background of Sharma—her career has focused on e-commerce and AI at companies like Instacart and Meta—at the helm of the gaming division. He with it, drew an analogy which many found to be quite illuminating.
“I imagine asking somebody if it made sense to put a major motion picture studio into the hands of somebody who didn’t like movies, or a major record label into the hands of somebody who’d never seen a live show,” Blackley added. “Why would you do that? Well, you only do that if you’re looking at the problem in a more abstract way,” he asked.
The Xbox designer even emphasized that Satya Nadella, Microsoft’s CEO, has made an unprecedented bet on generative AI. He has invested a huge amount of resources as well as credibility in transforming this company around tech. In that context, everything becomes a nail for the AI hammer—including the games.
Community reactions continue to mount as Xbox faces existential questions
Social media has erupted with reactions that range from dark humor to some genuine concerns, as leadership shakeup news spread. A post from an X user encapsulated the increased pessimism with a biting timeline of the recent gaming struggles of Microsoft. The made post traced a path from some major acquisitions to many disappointing results.
The user, in his way, suggested, “>buys Zenimax >Starfield flops >Tango and Arkane get axed >Nu-Doom 3 flops >buys Activision >COD:BOPS 7 flops, mogged by Battlefield 6 >Overwatch 2 loses to Marvel Rivals >quits >replaced by an Indian woman with an AI background who’s not even a gamer.” The post then concluded with a non-ubiquitous phrase suggesting, “It’s Xboxover.”
One of the X users even expressed disbelief at the broader implications of it all. The user said, “I know the writing is on the wall, but the idea of one of the big three of gaming just gone like that is ridculous to think about. I can’t wrap my head around Xbox being gone.”
Another followed up with a pointed observation about the shifting priorities of Microsoft. The user suggested, “I am more convinced that Microsoft is fine killing things that do not feed the AI god than I am them truly caring about a mildly profitable (for now) gaming arm.”
Some even pushed back against the narrative of doomsday. A user in this regard questioned the logic of abandoning the hardware completely. The comment read, “Sunsetting the main access point to 30 million player’s $30 monthly subscription is wild. Yeah very much doubt that.”
Seamus Blackley makes a blunt assessment, offering advice for future
Blackley addressed the tension directly within his interview. He noted that Microsoft currently appears more willing to subordinate proven and profitable businesses to propping up an unproven AI strategy. ”That’s weird and I don’t understand it,” he admitted. “But obviously, these guys are very surefooted about it, sure enough that they’re putting a huge amount of resources behind this.”
The former Microsoft insider even had some warm words for the outgoing Xbox leadership. He particularly had it for Sarah Bond, who, as per him, was “more than capable from a leadership point. Super cool, actual gamer. I really like Sarah Bond. This is a crappy day for her.”
Blackley further advised the incoming CEO, Sharma, to be characteristically blunt, yet quite constructive. He even urged her to either develop some genuine passion for games quickly or simply step aside. He further recommended that, whenever needed, she should seek wisdom from some gaming veterans like Shuhei Yoshida, Reggie Fils-Aimé, and Peter Moore.
“If you’re not really passionate about games, or if you can’t develop a passion for games, then you should find a way to leave this job soon,” warned Blackley. “You shouldn’t do it. Because it’s harder than you think,” he added further.
Now, as the gaming community digests all these developments, a thing that becomes clear is: Xbox, which enthusiasts grew up with, might be evolving to something that is totally different, or it’s probably disappearing altogether. Whether Sharma will prove all wrong or just manage a graceful exit for Xbox, the beloved brand, only time would tell. For now, the phrase “Xboxover” or “Xbox is Over” clearly captures the industry’s mood, which is bracing for significant changes.
