On the 23rd (local time), Xbox executives Matt and Asha addressed the current state of the gaming industry and announced four key priorities for the brand's future in an internal memo. The executives announced that the organization will revert its name from 'Microsoft Gaming' back to 'Xbox' to reflect its original mission, and established maximizing Daily Active Players (DAP) as their new primary goal.

In the memo, the leadership provided an unfiltered assessment of current player frustrations. They noted that console feature updates have been delayed and that the brand's presence on PC platforms remains insufficient. They also evaluated that core experiences—such as search, discovery, and social features—are fragmented, all while cost pressures continue to mount. Furthermore, developers are calling for better tools and a platform that facilitates faster growth.

The executives also highlighted structural shifts across the industry. While the console market remains stable, they analyzed that competition is intensifying in the Windows environment, where the largest user base and play time are concentrated. As development times and costs for blockbuster titles skyrocket, creator-centric platforms like 'Roblox' have grown to a scale rivaling major franchises. With subscription services becoming a primary way to play, user expectations have shifted toward immediate accessibility and a continuously evolving library.

They specifically noted the growth of non-Western markets. More than half of total market revenue and growth now originates outside of core markets, and developers in these regions are entering global competition with a level of speed and scale that threatens large Western studios.

Concluding that past models are no longer sufficient to overcome these limitations, 'Xbox' is building a new ecosystem centered on four priorities: hardware, content, experience, and services.

In hardware, the company plans to stabilize the foundation of the current 9th-generation consoles while announcing 'Project Helix,' a new initiative to lead performance by running both console and PC games. They intend to strengthen their lineup of personalized, high-performance accessories and build a robust ecosystem that offers greater choice.

In content, the company will aggressively pursue expansion into China, emerging markets, and mobile-centric audiences. They aim to elevate the value of creator-centric platforms like 'Minecraft,' 'The Elder Scrolls,' and 'Sea of Thieves,' while evolving third-party partnerships to solidify a long-term portfolio.

In experience and services, the company will establish clear differentiation and sustainable economics for 'Game Pass.' They plan to improve cloud play to ensure it runs smoothly on TVs and low-end devices, and will re-evaluate their approach to exclusive titles, release windows, and AI integration. In areas where organic growth is slow, they intend to use intentional M&A to accelerate progress.

The management team reaffirmed their commitment to ecosystem integration, stating, "Our mission is not to paper over our differences, but to connect everyone to something bigger than any single studio or product."

Full Text of the 'Xbox' Letter (Korean Translation)

Xbox has always been different.

We started with a simple idea: that games should bring people together through shared experiences. This led to the first Xbox in 2001 and Xbox Live in 2002, creating new ways to connect—from friends lists and achievements to party systems and cross-play across devices. Today, Xbox holds some of the most important franchises in entertainment and reaches over 500 million players worldwide.

From the beginning, Xbox was built by people willing to try what others wouldn't. We made a consumer-facing bet inside a massive corporation because we believed games would define the living room, and we were at risk of missing that opportunity.

That spirit has guided us for the past 25 years, and it is essential for us to move forward.

What we must do

Players are frustrated.

The frequency of new feature updates for consoles has decreased. Our presence on PC is not strong enough. Pricing is becoming increasingly difficult for people to keep up with. And core experiences like search, discovery, social, and personalization still feel too fragmented. Developers and publishers are also demanding better tools, better insights, and a platform that helps them grow faster.

At the same time, a new generation of players with different expectations is coming online. Their time is divided between games, media, and everything else competing for their attention. They expect more content in familiar places, want to shape the worlds they play in, and want to create and interact together, not just play together.

These changes are happening as the industry reshapes around us. The console market remains huge and stable. Windows now captures more players and more play time, becoming the most competitive arena. Despite the rising costs and time required to produce blockbuster titles—increasing the pressure on what games to make and how to take risks—players have access to more games than ever before. Some of the biggest recent successes have come from small teams or even solo creators, and places like 'Roblox' are producing experiences on a scale that rivals major franchises. Furthermore, more players are choosing subscriptions and services as their primary way to play, with expectations for immediate access, lasting value, and a constantly evolving library.

The industry is becoming global and hyper-competitive. More than half of market revenue, players, and growth are coming from outside core markets. But the rest of the world is not just a big market. Developers there are combining scale, speed, and a willingness to reinvent genres once thought mature to increasingly compete with the most established studios in the West.

The model that brought us here will not be the model that takes us forward.

Xbox will be where the world plays

What will Xbox be in this next era?

Xbox will be where the world plays and creates. We will build a global platform that connects players and creators everywhere. Consoles will be the foundation for premium experiences, and the cloud will bring those experiences to any device. You can play where you want, and your games, progress, friends, and identity will stay with you across console, PC, mobile, and cloud.

Xbox will be built to be affordable, personalized, and open. We will offer flexible pricing to make it easy to start and keep playing. The experience will adapt to you, helping you customize how you play, find what you love, and connect with the right people. And we will be open to all creators, from individuals to large studios, providing everyone with the tools to reach a global audience and grow their games sustainably.

Our new North Star will be Daily Active Players (DAP).

We will execute this through four priorities: hardware, content, experience, and services.

Hardware

- Stabilize the 9th-generation console as a healthy, high-quality foundation

- Deliver 'Project Helix' to play console and PC games and lead in performance

- Lead in comfortable, personalized, high-performance accessories

- Build a powerful ecosystem that expands choice and reach

Content

- Continue to grow and expand the portfolio of franchises players love

- Evolve third-party partnerships and strengthen the 5-year slate (release plan)

- Expand to China, emerging markets, and mobile-centric audiences

- Maintain and grow live games with long-term management

- Elevate creator-centric platforms like 'Minecraft,' 'The Elder Scrolls,' and 'Sea of Thieves'

Experience

- Fix the fundamentals for players and partners

- Make Xbox the best place for developers and creators to build and grow

- Overhaul discovery, customization, social, and personalization to connect communities

Services

- Strengthen 'Game Pass' with clear differentiation and sustainable economics

- Return the business to sustainable growth through strong cost control

- Configure cloud play to feel as fast and stable as native on TVs and low-end devices

- Use intentional M&A to accelerate growth in areas where organic growth is too slow

In the process, we will re-evaluate our approach to exclusives, release windows, and AI, and we will share more as we learn and decide.

We are Xbox

To achieve our master plan, the way we work must also change.

Our best work comes when the entire stack moves together. "Microsoft Gaming" describes our structure, but it does not describe our ambition. So, we are returning to where we started and renaming the team.

"We are Xbox."

We are a culture of 'high agency' where wild and cool ideas thrive. Our job is not to paper over differences, but to connect everyone to something bigger than any single studio or product.

We must be honest about where we are today. We are challengers, and to meet this moment, we need speed, energy, and a level of self-criticism that feels uncomfortable. When we are at our best, we:

1. Win every player

2. Protect our art

3. Stay rebellious

4. Seek progress over perfection

5. Value signal over noise

6. Prioritize core over addition

7. Solve problems overwhelmingly

8. Speed is learning

9. Put makers before managers

10. Clarity is kindness

Over the past five years, Xbox and the industry have undergone an unimaginable amount of change, and this team has continued to deliver for the community through it all. Thank you for staying focused on what matters. As I reach my 62nd day in this role, I am proud of how we have kept our promise of great games, the return of Xbox, and the future of play. We are here to do the most creative and courageous work of our lives, and that is what we will do together.

With gratitude,

Matt & Asha