Co-founder of Xbox: Microsoft's new gaming CEO Sharma may quietly bring an end to Xbox

K-LinePoet · 2026-02-25T09:12:27+00:00

Co-founder of Xbox, Seamus Blackley, expressed concerns about Microsoft's new CEO, Asha Sharma, stating that she will gradually dismantle the Xbox brand and transform it into an AI-centric business. He is pessimistic about Xbox's future, believing that Microsoft's traditional approach will struggle to compete with rivals, and that artificial intelligence could threaten the position of game developers. Although Sharma emphasized that Xbox hardware and games will remain a priority, players remain skeptical.

K-LinePoet

2026-02-25 09:12:27

Abstract generation in progress

IT House February 24 News, Xbox co-founder shared his thoughts on the recent turmoil at his former company. In an interview with GamesBeat, Seamus Blackley did not see the appointment of Asha Sharma as the new CEO of Microsoft Gaming as a positive development. He predicts that Sharma will gradually dismantle the Xbox brand, with the goal of transforming it into an AI-centered business.

Blackley reminded the public that Microsoft and CEO Satya Nadella have invested heavily in artificial intelligence. His predictions for Xbox’s future are alarming:

Like many non-AI core businesses, Xbox is being phased out. They won’t admit it publicly, but that’s the reality. I expect the new CEO, Asha Sharma, to act like a palliative care doctor, quietly bringing Xbox to an end.

After succeeding Phil Spencer, Sharma insisted that the company would not “flood our ecosystem with soulless AI-generated content.” However, Microsoft expects AI tools to dominate all industries. Blackley cited Nadella’s words, saying, “AI will consume everything, including the gaming industry.”

IT House notes that the creator of the original Xbox console pointed out that the new CEO’s experience is focused on AI rather than gaming. Using many well-known industry failures as examples, he believes that outsiders eager to enter the industry are often unprepared for its many challenges. In Blackley’s view, gaming is a complex industry that combines technology and creativity.

Critics worry that game studios will replace developers and artists with generative AI tools. The Xbox pioneer questions whether machine learning can ever replicate human-created art. He also questions why Microsoft would abandon mature, reliable business models in favor of unproven alternatives. Despite this, Microsoft has relied on traditional methods for years, struggling to compete with Nintendo and PlayStation.

Although Blackley’s outlook is quite pessimistic, Sharma seems to value first-party hardware and games. She stated that the company will “start with the console business and reaffirm its commitment to Xbox.” However, many gamers remain skeptical about this strategic shift. Rumors suggest that the new Xbox console may be more like a Windows gaming PC, without exclusive titles to satisfy fans.

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