Microsoft’s Xbox division is on a downward spiral, following years of misguided decisions and heavy financial outlays. Despite the company’s attempts to diversify its offerings with Game Pass and expansive marketing campaigns, the results have been underwhelming.

The shake-up led by new CEO Asha Sharma includes potential studio closures, raising concerns about the future of highly regarded development teams like Arkane and Double Fine Productions. These moves signal a significant shift in Microsoft’s strategy but may come at the cost of innovation and quality that these studios are known for.

The industry-wide challenges faced by Xbox include increasing hardware costs and anti-consumer practices, making its struggles particularly pronounced. With this reset, it remains to be seen whether the company can regain its former glory or if the damage is too extensive to repair.