Alinea Analytics expresses confidence that Asha Sharma, the newly appointed head of Microsoft Gaming, can successfully navigate the division out of its current period of stagnation.
In a recent industry briefing, Rhys Elliott, Lead Market Analyst at Alinea Analytics, observed that game development is fundamentally an artistic endeavor rather than a standard tech operation. He noted that the sector thrives on “hit” titles and involves long-term development cycles—elements that frequently conflict with a major corporation’s desire for immediate and consistent returns on investment.
Despite Asha Sharma’s lack of direct experience in the gaming sector, Elliott believes her leadership could prove highly effective. However, he suggests that the most strategic long-term move would be spinning Xbox off into a standalone company. With major acquisitions like Activision and Bethesda in its portfolio, an independent Xbox would no longer be forced to justify its profit margins against giants like Azure or Windows. Instead, it could return to its roots, operating with the agility and focus required to compete in the gaming market.
Analysts indicate that Sharma may be the right leader to resolve the plateauing growth of Game Pass and move past recent marketing missteps. Nevertheless, for the brand to truly revitalize its 25-year legacy, they argue it must transition from being a secondary branch of the Microsoft empire to becoming a self-governing entity.
However, Elliott did not clarify how a detached Xbox would secure the massive capital required to manage its assets and fuel future expansion. It is worth noting that the Xbox division has struggled with profitability for years, often operating at a loss or merely breaking even. Without the massive financial safety net provided by Microsoft, the division’s continued existence as an independent player would be deeply uncertain.
Source: iXBT.games