In among the litany of failures across Xbox and Microsoft in general, there are at least a few dozen undeniable epic business wins. One of those is undoubtedly Minecraft.

The blocky craft 'em up adventure already had huge momentum when Microsoft acquired it, but the firm has since turned Minecraft into a cultural powerhouse, with a merchandising and licensing empire that is often overlooked in general gaming discourse. Microsoft thinks there are more opportunities like this ... and that's why it is creating a new division under Xbox today.

"XP" is a new department under Microsoft's gaming team, led by new XP CEO Kayleen Walters, former president of Minecraft.

During Xbox's internal Town Hall meeting this week, Xbox CEO Asha Sharma described "four Cs" of focus for Xbox, with the session focusing mainly on Core and Content, i.e. console growth and uplifting Xbox's first and third-party content. Sharma described XP forging ahead with the Creator and Connection segments of the plan, aimed at developing other Xbox franchises to the same heights as Minecraft itself.

Microsoft put out a blog post today outlining the vision for XP, which will essentially operate as a licensing pipeline across all of Xbox's major franchises.

"Xbox Pictures" will focus on opportunities to bring Microsoft gaming franchises to the big and small screen, in the forms of movies and TV shows. Microsoft has already revealed a range of content in this area, including content for Gears of War, Wolfenstein, Diablo, among others. Big wins here include the Minecraft movie and Fallout TV show, both of which were huge successes in their own right, and vastly boosted interest in the games.

"Xbox Products" will extend what Walters has already done for Minecraft in the form of merchandising and other product lines. Microsoft says that these will be "authentic" to the fandoms. Toys 'R' Us recently announced plans to open dozens of new stores, focusing on the new adult toy-collector cohort. I suspect Microsoft may seek to join in here ... perhaps we could see Skylanders return?!

"Xbox Places" will be a new division focusing on fan events and theme park experiences. Microsoft specifically referred to BlizzCon in the press release here, and I recently heard whispers that Microsoft was interested in extending the BlizzCon model to other major Xbox franchises. Microsoft also has a theme park for Minecraft going live in the UK next year, set as a test bed for this type of thing. Perhaps the Overwatch map "Blizzard World" will become a reality some day ...

Finally, we have "Xbox Partnerships," which will continue the work Microsoft already does bringing its universes into other brands. The recent IKEA Xbox furniture line is an example of this, as well as the Blizzard McDonalds promotion in the UK, and the recent Fanta Xbox Game Pass integrations.

Kayleen Walters spent 13 years at Lucasfilm doing the same kind of work between Disney's theme parks and merchandising empires for Star Wars, and delivered the same for Minecraft during her tenure at Xbox. Now, Microsoft is hoping to extend that even further to franchises like Fallout, Call of Duty, Candy Crush, and more.

Reaching Xbox fans outside of Xbox

Speaking on the appointment, Kayleen Walters had this to say about XP and the potential that exists in Xbox's franchises.

"XP was created from a simple but powerful belief: the world's most beloved gaming franchises have an opportunity to reach people far beyond the boundaries of the game itself. Fans don't just play our franchises. They watch them, wear them, attend them, celebrate them, and connect with them in countless ways. XP brings together the teams responsible for helping XBOX franchises show up in the world in bigger, more meaningful ways."

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Microsoft has also appointed former Reddit and Meta executive to run Minecraft in Walters' stead, with a goal of growing Minecraft's chops as a developer platform, taking on Roblox and the like.

This era of Xbox revolves around synchronizing and utilizing Microsoft's acquisitions of the last few years, identifying the clear opportunities that the Minecraft movie and Fallout TV show has presented. Other big media properties of recent years, spanning Cyberpunk, to Castlevania, to Resident Evil, have all seen significant uplift as a result of successful delivery of these shows and movies.

Of course, those movies and TV shows have to actually be good. And as the Halo TV show has taught us ... a flop can actually do more harm than good to a gaming brand and its potential. There's no guarantee Microsoft and its partners can easily emulate the success of the Fallout TV show and Minecraft movie with other properties. I would like to see them take another stab at a Warcraft movie, though.

In any case, Microsoft has explored this segment before with Xbox Entertainment Studios, which fell apart quite rapidly. Microsoft knew this segment was going to be big, as far back as 2012. Although it seems Microsoft now has the good sense to work with external experts (like Netflix and Amazon Prime) rather than try to develop some of these products in-house.

It remains to be seen if the results of this venture will actually deliver. There's definitely a clear and obvious opportunity here, and Xbox's primary competitors, Nintendo and PlayStation, are leaning heavily in this direction already.

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Splitting up with your partner usually leaves both parties on rather poor terms, or is that just me? In the case of Undead Labs, the developer behind State of Decay, that seemingly isn’t the case.

In a recent interview with Game File, Undead Labs Studio Head Philip Holt was asked why the studio is still sticking with Game Pass, and here’s what he said:

Shocking many I'm sure, as again another developer comes out in defence of Game Pass, but Holt does go on, stating:

"Even today, we have several thousand people coming through the door every day. The benefit of State of Decay is that it’s a very retentive game. Last time I looked, something like half of our monthly active users have been in the game for close to two years, and a quarter for more than five. A lot of players from Game Pass come in and they’re like ‘this isn’t for me’ and leave. There is a high churn rate. But of the players we capture, we capture for a long time. And then they become franchise fans and consume other titles, and they’re excited for State of Decay 3. It’s really helped us achieve scale."

He continues, lamenting Game Passes reach:

"How do we make the most of that for State of Decay 3? Our biggest investment by far is the four-player co-op shared world, so a large audience that comes through Game Pass becomes a huge benefit. They play State of Decay 3, it is a great experience with friends, they invite their friends, and many of them will be on other platforms. It is a vector of growth for us."

The full interview dives into a plethora of additional details, including how the studio is working with three co-development teams to keep the project on track, so I do suggest you dive in and read it yourselves. But it’s great for us Xbox fans to see Holt take this position and recognize the value of a service like Game Pass despite the split with Xbox.

Thankfully, State of Decay 3 is full steam ahead for next year. As quite the zombie fanatic, I’m excited and hopeful that the game does well. It remains the one game I wish Xbox hadn’t chucked out amid their restructuring, but alas.

Do let me know your thoughts on Holt’s comments down below!

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Xbox CTO Scott Van Vliet has taken to X (formerly Twitter) to confirm that more is coming to make development on the platform easier. Despite already rolling out numerous positive changes for developers, Van Vliet states that the company is actively working to remove further friction.

“We’ve heard the feedback from developers: bringing a game to XBOX should be easier than it is today. We agree, and we’re working to make it better. We care deeply about ID@XBOX and the developers who build for XBOX. We’re starting with some of the areas we know can create unnecessary friction, including our concept and publishing processes, and simplifying them so developers can spend less time navigating process and more time bringing great games to players. More soon.”

It’s great to see Xbox address developers directly here and whilst what exactly will change is kept rather vague for now, and doesn’t give much away, outside of simplifying concept and publishing processes, it's still nice to see acknowledged, and publicly no less.

Not long ago, I was getting quite giddy over changes made to PlayFab, specifically with the introduction of Foundation Mode. This gives developers access to backend services for free, including infrastructure for multiplayer lobbies and other essential features.

At the same time, Microsoft expressed confidence that developers could now get working within the Xbox development environment in about 30 minutes, making the onboarding process significantly simpler than before.

For folks like me, and you, it won’t really mean much if you just play games. But for developers, Xbox is making serious strides to lower as many barriers as possible. Eventually, maybe skipping Xbox won’t be an option anymore? Who knows?

Hopefully, we hear more soon about the specific changes Van Vliet is referring to. Despite not being all too technically inclined with game development, I do enjoy dabbling here and there, and as an Xbox fan, it’s exciting that more and more developers might see the platform as more viable in the future.

With that said, let me know if things like this excite you or not by commenting down below, and be sure to take part in our poll.

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After the double-whammy launch of Gears of War: E-Day and Minecraft Dungeons 2, things are quietening down for Xbox Game Pass as its next batch of new titles includes a mixture of older AAA titles like Battlefield 6 and intriguing new IP like the soulslike FPS, Valor Mortis.

Here's the full list of Xbox games coming and leaving Xbox Game Pass for the second half of October 2026.

Games leaving Xbox Game Pass (October 15)

• A Plague Tale: Requiem (Cloud, Console, and PC)
• Clair Obscur: Expedition 33 (Cloud, Console, and PC)
• Crime Scene Cleaner (Cloud, Console, and PC)
• Donut County (Cloud, Console, and PC)
• Evil West (Cloud, Console, and PC)
• Nova Roma (Game Preview) (PC)
• Pacific Drive (Cloud, Console, and PC)
• Superball (Cloud, Console, and PC)
• The Casting of Frank Stone (Cloud, Console, and PC)

Windows Central's take

The biggest game on this list is Battlefield 6, the latest entry in EA's long-running military FPS series. The game has received generally favorable reviews, with critics praising its tight gunplay and multiplayer, but felt the single-player was lacking in the character writing and plot departments.

Battlefield 6 will arrive on Xbox Game Pass on October 13, 2026, which will be the same time the game launches its fifth season.

This season will have players battle in Las Vegas with several new maps, weapons, and vehicles, a new Operation, a Halloween event, a Server Browser, a #REDSEC: Rapid Royale mode, Platoons, and more.

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However, I'm not sure players will have time to play this game because three days after Battlefield 6's induction into Xbox Game Pass...will mark the launch of Call of Duty: Modern Warfare 4, one of the most anticipated Xbox titles of 2026.

Will Battlefield 6 manage to capture player retention away from its biggest rival in the military shooter genre with its Xbox Game Pass inclusion and Season 5 content? Will Call of Duty: Modern Warfare 4 sweep Battlefield 6 under the rug with its massive campaign mode, intense PVP modes, and new DMZ extraction mode?

Only time will tell next week.

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Yesterday, Xbox CEO Asha Sharma spoke to Microsoft employees in a big Town Hall meeting, covering a variety of topics.

Xbox's gaming org has undergone vast restructuring this summer leading to thousands of job cuts via layoffs and divestitures. The reorg is designed to reduce costs and shift as much of its business as possible out from underneath Microsoft U.S. corporate structure. More of Microsoft's game studios have been moved under purpose-built publishers like Activision and Bethesda, as the AI buildout continues to dominate Microsoft U.S. overall bureaucracy and legal apparatus.

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Xbox stated recently that its restructure is "75% complete," with staffers still wondering what additional layoffs might be on the table. But for now, Asha Sharma took to the internal airwaves to give Xbox staffers an update on what to expect in the coming months from Xbox's overall plan. The quotes below were transcribed to us and verified with multiple sources.

Xbox's big plans for PC and gaming in general: easier publishing, and a Battle.net boost

Sharma spoke on a range of topics at the event, some of which we covered yesterday which you can read up on here. There, Xbox's Asha Sharma spoke on the need to strengthen Xbox's core user base: console users, with plans to boost Xbox Series X|S and the next-gen Xbox Helix "family of devices." But today, I'd like to highlight her comments on Xbox PC and its future, which includes boosted publishing powers for developers, more support for Battle.net, and more.

"On PC historically, we've taken a one-shot approach. We've had one app, and that's what we've focused on. As we have dug in, we're leaving a lot on the table," Sharma said. "It turns out that Battle.net supports an audience that we're not reaching outside of it, and it is awesome at it. The retention is nearly as good as Steam's retention, and we've never really put any work behind it as a platform. And so, we are doing that. We are doing it the right way for that community. It'll be great for our first-party games, and great for select third-party games too."

Indeed, Battle.net recently picked up its first third-party game in the form of The Witcher 3. Activision previously experimented with Battle.net, putting Call of Duty and Tony Hawk's Pro Skater up on the service, and Xbox chimed in with DOOM and Avowed, among others. Blizzard seems to be taking a more curated approach to content on Battle.net, as opposed to opening the flood gates Steam or Xbox PC-style. Retention refers to return users, and not necessarily total users. Sharma is saying that once they're in the ecosystem, Battle.net users stick around at a rate almost as good as Steam.

It'll be interesting to see what publishers show up there next in any case. I could see Battle.net focusing more on AAA type stuff, but it also seems to be designed to help Xbox boost Xbox Play Anywhere. Indeed, The Witcher 3 is now Xbox Play Anywhere on Xbox Series X|S consoles and cloud as a result of this partnership, even if you grab it via Battle.net on PC.

None of this means Xbox plans to ditch Steam, though.

"We will continue to invest in other PC apps as long as they reach distinct audiences," Sharma emphasized. "The Windows app [Microsoft Store] reaches a lot of people around the world. In fact, in China, it is the number one store," Sharma said, although it's unclear by what metric they're measuring this. It's true that Fortnite, Roblox, and some other major service-type games are available on the Windows Microsoft Store, and not on Steam. I'm told many users in China access Steam via a VPN, which probably clouds some of these figures.

"We're collaborating across the board," Sharma said, "we're doing a lot this fall [in terms of offers] through OEMs. We have an offer going out to 14 million OEMs. I saw some great pre-install work that's happening for [World of Warcraft], and some great conversion numbers. We will continue to succeed on Windows. There are a billion Windows PCs. There's no reason we shouldn't be serving our audiences there."

OEMs refers to companies that build and ship Windows-based devices. It sounds to me like Sharma and Xbox are working to bundle other content with upcoming laptop launches. Many laptops come with PC Game Pass codes these days, for example, and it sounds like World of Warcraft may come with launchers and gametime pre-installed on some devices to celebrate the launch of WoW: Forever and further boost Battle.net in general.

Finally, Sharma spoke about making it easier to "work with Xbox," echoing complaints I've heard from developers big and small about building games for the Xbox ecosystem.

"Right now, it is simply very hard to work with Xbox," Sharma admitted. "So, we are simplifying the targets, we're moving to a headless partner center, we're taking the cruft out of our APIs, and we're making them machine-readable. There's a lot of work here. We need developers to be able to work with us, understand how they are performing, and have tools that actually grow their business. There's a lot we can do here. I'm encouraged by the work happening."

The idea here is to make Xbox's publishing programs as simple and automated as possible, reducing the need for human-intervention and bottlenecks. You might notice on Metacritic that PS5 and Steam reviews of games often vastly outstrip their Xbox counterparts. One reason for this is that developers' games often seem stuck in certification until the last minute on Xbox, with reviewers and content creators opting for PS5 and Steam versions as codes usually come in much earlier there.

More problematically, Microsoft's publishing requirements often just see indie developers rejected without providing any clear reasoning, despite obtaining clearance on Steam and PS5. It's often only when the Xbox community gets involved and makes noise that some publishers get their work cleared through cert, which is absolutely stupid. It sounds like there's an effort to fix this, thankfully.

PC gaming is a huge opportunity for Xbox, both on and off Steam

Microsoft's core focus is rebuilding its Xbox Series X|S console business ahead of the Xbox Helix launch, but it's encouraging to see they're not abandoning efforts to strengthen their PC offering.

In years past, Microsoft earned itself a reputation of hostility among PC players, with services like Games for Windows Live remaining notorious to this day. As of 2026, Xbox's offering on PC is far far better. The Xbox PC app is in a much better place (although could still be better), the Xbox Ally X handheld is a fantastic console companion for Xbox Play Anywhere fans. And perhaps ironically, Microsoft's disc-to-digital program on Xbox consoles is offering a way to acquire physical PC games for the first time in years, strangely.

Microsoft still has a way to go on building trust with PC gamers for sure. I would argue having more open dialogue with the community there and having a more public, prominent feedback program similar to what we've seen on Xbox Series X|S would help. PC Game Pass is still a very strong offering, and Battle.net is arguably the best of the publisher-focused launchers, vastly outstripping stuff like Ubisoft Connect and EA Play.

PC gaming is a very different culture to console gaming, and arguably more competitive. Steam is absolutely beloved, and outside of that, we have an arrangement of publisher-focused launchers like the Riot Client and HoYoverse launchers. Xbox PC still needs a lot of work on the performance side, especially on handhelds, and the integrations with external launchers like Battle.net itself aren't always the best. But as an Xbox-first, Xbox PC-second gamer, I've been encouraged by the work here. I'd love to see Xbox boost publisher relationships and discoverability for indie games, improve the search functionality on Xbox PC, and also streamline processes for getting Xbox Play Anywhere functional.

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You can now beat the scalpers and ensure that you get what I believe is the most stunning Xbox controller ever made. Pre-orders for the Xbox Wireless Controller X25 Special Edition are live right now!

A translucent green design lets you see the internal components of the controller while also giving you a shot of nostalgia. Fans have wanted a green controller like this for years, and Xbox finally delivered.

An ode to Xbox

Microsoft announced the Xbox Series X25 earlier this year. While that console is gorgeous, those who already have an Xbox Series X may not buy another console just for a refreshed look. But you can celebrate the 25th anniversary of Xbox without spending $899.99.

The Xbox Wireless Controller X25 Special Edition is "OG Green" and has a translucent body. Small touches such as the ABXY buttons matching the original Xbox controller add up to make a stunning controller. The bumpers are even black and white similar to the black and white buttons of the "Duke" controller.

The black Xbox button shines a green light as a throwback to the early days of Xbox. The back of the controller has a see-through panel featuring the classic XBOX logo.

Unfortunately, as with most collectible hardware, scalpers will gobble up a lot of the stock of the Xbox Wireless Controller X25 Special Edition. Locking in a pre-order early is your best bet to avoid inflated resale prices.

Whether you're enjoying the new games that were just announced at the Future Games Show at Gamescom 2026 or playing games you just converted through the Xbox disc-to-digital program, the Xbox Wireless Controller X25 Special Edition will be a gorgeous companion.

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Today, Xbox CEO Asha Sharma addressed all of Xbox in an internal town hall, the transcript of which was shared to Windows Central and verified by trusted sources.

Xbox has been undergoing something of a reset this year, with divestitures, layoffs, and structural changes. Xbox Game Pass removed Call of Duty and picked up a big price cut, Xbox also returned to exclusive games and content, and began investing in marketing and features for its Xbox Series X|S consoles again for the first time in years.

"Why do we exist?" Sharma said, "We exist to be where the world plays, we will know when we have a billion daily active people, and we have a right to win because we're now focused on our fans and franchises."

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Sharma noted that Xbox was declining in hours spent, players, and revenue at the start of the year. She now says Xbox has stabilized in hours spent, and she's now said after year-over-year first party declines, Xbox has now returned to growth in this area. She reiterated that the previous Xbox Game Pass strategy sent Xbox into "freefall" declines on the balance sheet, likely referring to the damage at both ends to Call of Duty and Xbox Game Pass.

UPDATE: To clarify, when speaking about growth here, I'm told Asha Sharma was using a chart referring specifically to first party growth, i.e. games that Xbox owns and publishes. I've updated the text to clarify this.

"We're making the right decisions to reinvest in the business, after an all time low, we've started to return to growth, more than 2 to 3 times what we were, and we expect that continue." Asha Sharma also called out Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft Forever for having "strong" starts, and noted that Xbox has seen a 30% increase in positive brand sentiment over the past year.

Growing Xbox Series X|S, leveraging Xbox Helix, Xbox Game Pass, and more handhelds?

Core, content, creation, and connection, are the "four C's" Asha Sharma described as leading Xbox forward. She said that Xbox's market position suggests it needs to invest more in Xbox console, despite the fact the segment overall isn't growing in the gaming industry — she says Xbox still has an opportunity to grow in the space. She also said Xbox doesn't have "the right" to grow beyond console if it can't serve their "most valuable players the right way."

Asha Sharma says strengthening Gen-9 (Xbox Series X|S) is key to this, calling out innovations like Xbox Cloud Gaming, Xbox's disc-to-digital program, and Xbox Play Anywhere growth. She also hinted that Xbox Game Pass will get more "flexible for more players" in the future, reiterating previous hints that users will be able to tailor exactly what types of content they want to access in the service.

Asha Sharma also called out Gen-10, Xbox Helix, describing it as a "family of devices."

"We are moving to a family of devices for Gen-10. There is not one device that fits all. We will certainly have a great console first, but we also know that many players will be on the go. There are some things that we are the best in the world to manufacture, and there are other things that will we partner on. So, we will be sharing more about that as our plans develop. The operating system is starting to look really good. We're very excited about this."

Asha Sharma also spoke about Xbox PC and Battle.net, talking about an intention to grow Battle.net as a platform. She said Battle.net is almost on-par with Steam for user retention, and the recent partnership to bring CD Projekt RED's games like Witcher 3 to Battle.net will grow further. "We will do it the right way for those communities," she said, hinting that Battle.net will remain a more curated store compared to the likes of Steam or Xbox PC.

On further opportunities, Asha Sharma also revealed that Xbox PC is, in fact, the number 1 PC gaming storefront in China (although, it has been suggested to me that this claim likely excludes China-based Steam users using a VPN — I'm exploring this comment a bit more.)

Update: I'm told Asha Sharma was referring to the Windows Store here, not necessarily the Xbox PC store, which while linked are indeed separate technically. For context, he Windows Store is installed by default on Windows 10 and 11 PCs, and contains many games that aren't available on Steam including Fortnite and Roblox.

Asha Sharma also stated that they'll continue to invest in other PC apps where there's a distinct audience, i.e. Steam in general.

Sharma also said that Xbox is "simplifying" the target and streamlining APIs for publishing on Xbox to make it easier for developers to ship on Xbox Series X|S, Xbox Helix, and Xbox PC — which has long been a sore point.

Xbox's strategy looks like the right one, for now

Xbox has seen tons of layoffs over the summer in a big effort to restructure more of the business away from the ballooning costs of Microsoft bureaucracy. To that end, it has shifted some Xbox studios under purpose-built subsidiary publishers like Activision and Bethesda, divested some, and shuttered others.

Microsoft has also doubled down on its core audience, Xbox console players, whose neglect became untenable at the start of the year as Microsoft seemed to focus on future-facing telemetry data at the cost of the current reality.

Indeed, I wrote two years ago that Xbox was neglecting its core at the cost of growth that might never materialize, and it seems that growth indeed never did materialize in the previous strategy.

There are positive shoots throughout Sharma's pitch to Xbox staff, but she still noted upon caution with regards to the state of the economy, the RAMpocalypse, and generalized disruption in the entertainment biz.

How are you feeling about Xbox's new strategy so far? Let us know in the comments.

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