Xbox CEO Asha Sharma Halts AI Integration, Game Pass Grows After 100 Days
Sharma's early moves signal a sharp break from Microsoft's company-wide AI push and a willingness to publicly acknowledge Xbox's struggles, setting a new strategic direction for the division.
Reporting from 1 sources: Game Spark.
In her first 100 days as Xbox CEO, Asha Sharma canceled direct AI integration into Xbox, citing player disinterest, and revealed that component costs have surged 2.75 times due to the AI boom, complicating next-generation console pricing. Game Pass returned to growth after eight months of decline, and Sharma brought in a critic as an advisor to help reset the business.
Asha Sharma, who became Xbox CEO 100 days ago after a career at Instacart, Meta, and Microsoft's AI division, gave a Bloomberg interview detailing her early decisions. She halted direct AI integration into Xbox, explaining that players were not excited about the experience, even as Microsoft CEO Satya Nadella pushes Copilot across the company. Sharma said she is not opposed to AI but wants it used behind the scenes, for tasks like prototype creation and graphics upscaling.
Sharma also disclosed that component costs for next-generation consoles have risen 2.75 times and increased 50% in just her first 100 days, driven by the global AI boom. She said the business model needs fundamental change, noting that new gamers want short sessions anywhere. Game Pass, which had declined for eight months, returned to growth after recent price adjustments. Sharma called the company's state unhealthy and said the next 100 days will focus on resetting the business. She brought in a well-known game analyst who has been a harsh Xbox critic as an advisor, stating, 'We are challengers and need to accept uncomfortable truths.'
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.