Analysts Evaluate Microsoft’s Xbox Reforms Amid Potential Deeper Crisis

Recent layoffs and structural changes at Microsoft have drawn sharp reactions from analysts who believe Activision and Bethesda are gradually gaining more control over the former Xbox organization.

NYU Stern professor Joost van Dreunen described the situation as “a slow reverse takeover,” noting that Activision and Bethesda are becoming key decision-making entities and taking control of the Xbox legacy.

Specialists at Omdia and Alinea Analytics believe that the focus on Game Pass did not expand the audience at the expected pace and instead partially pulled players away from buying games at launch. As a result, Microsoft is trimming its internal portfolio and relying heavily on major publishing structures.

Newzoo notes that the company is distributing genres among divisions, assigning shooters to Activision, RPGs to Bethesda, casual games to King, and racing games to Playground Games. This is intended to reduce competition between projects for player attention.

The fate of Ninja Theory raises particular questions, as two failed attempts to sell the studio demonstrate, according to analysts, just how difficult it is to monetize expensive single-player projects.

Dr. Serkan Toto of Kantan Games warns that excessive simplification of the structure could strip acquired studios of their individuality, while the failure of key upcoming projects could lead Xbox into an even deeper crisis.