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Xbox CEO issues ominous warning over crisis facing the gaming industry
Home>Gaming>Xbox
Published 16:34 24 Jun 2026 GMT+1

Xbox CEO issues ominous warning over crisis facing the gaming industry

It comes amid rumors that Microsoft could sell off its Xbox arm

Tom Chapman

Tom Chapman

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Featured Image Credit: Microsoft
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If you've so much as glanced at the world of video games recently, you'll know it's becoming more expensive than ever to pick up your favorite video game, let alone the console or PC needed to play them.

The whole tech industry is being rocked by an increased demand for RAM, and with this AI boom, a tiny number of companies hold the keys to the kingdom. Apple's Tim Cook has already foreshadowed the price of the next iPhone soaring, while the recent confirmation of the Steam Machine's price tag has us fearing the next generation of Xbox and PlayStation consoles could sting us for upwards of $1,200.

Gaming is arguably being hit harder than the rest, with that mythical $1,200 already being floated for Xbox's Project Helix, and apparently, it's not just us gamers who are worried. Xbox CEO Asha Sharma is steering the ship in a very different direction from her predecessor, with Phil Spencer's replacement being praised for bringing down the price of Game Pass.

Sharma definitely seems to be listening to feedback, and now, she's issued her own warning about how the industry's current trajectory is unsustainable.

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Sharma wants to making more accessible to gamers (Microsoft)
Sharma wants to making more accessible to gamers (Microsoft)

In a sprawling interview with Entertainment Weekly, Sharma explained her vision for the future of Xbox and what's keeping her up at night.

Away from reaffirming Xbox-exclusive titles like Gears of War: E-Day, and skirting around the idea of potential studio closures, Asha said she wanted to create "a more open ecosystem to invite more developers, to have more types of games, to invite more players."

Reiterating that Xbox needs to have mainstream products that people can enjoy, whether they describe themselves as a gamer or not, she used Candy Crush as a bizarre example due to the fact that it's free. While we hope this doesn't mean Xbox is going to simply pump out free mobile games, Sharma continued: "Gaming is unaffordable in many cases, in terms of how we've traditionally thought about it."

Sharma is keeping her cards to her chest when it comes to Xbox's future (Xbox Game Studios)
Sharma is keeping her cards to her chest when it comes to Xbox's future (Xbox Game Studios)

This isn't just because of hardware prices soaring, but "because of the attention economy and competing subscriptions." We've seen this in the streaming world as people continue to trim the fat and decide whether to keep their Netflix subscription as rivals like Disney+ and Prime Video offer alternatives.

Knowing it's a long road ahead, Sharma concluded: "It's a really hard formula. It's a really challenging business, but I think it's a really special business."

Even though it's ironic that some claimed Sharma's appointment would be the 'end' of Xbox despite all the good she seems to be doing, this could be the case for another reason. Recent rumbles shared by The Information cited sources familiar with upcoming and claimed Microsoft has considered spinning off Xbox as its own subsidiary, akin to LinkedIn. The idea that Microsoft always makes a loss on its Xbox consoles has been shared a million times before, and while Sharma is promoting the potential of Project Helix, all those whispers about more layoffs and whole studios being shuttered are ringing alarm bells.

Even though it sounds like it's for the best if Sharma makes gaming cheaper and more accessible, we question what the cost of achieving that will be.

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