Microsoft recently went through major internal changes in its gaming division. Longtime Xbox leader Phil Spencer is retiring, marking the end of an era. With leadership shifting and the gaming industry facing new challenges, Asha Sharma has now stepped in as the new CEO of Xbox, and she’s already addressing what she means by “the return of Xbox” mentioned in her opening message after taking on the helm.

In a recent interview with Windows Central, Sharma explained that the phrase isn’t about abandoning recent strategies, but about reconnecting with the original spirit that defined Xbox in its early years. According to her, “Return to Xbox” is about bringing back that sense of surprise, bold ideas, and willingness to try things others wouldn’t.

Focusing on Xbox console hardware

A major part of that return centers around console hardware. Xbox’s console business has faced consistent decline in recent fiscal years, and many fans have questioned Microsoft’s long-term commitment to hardware, especially after the company began releasing more first-party titles on competing platforms. Sharma directly addressed that concern. She emphasized that Xbox starts with its fans and the console, and that she is committed to protecting the investment players have made over the past 25 years.

“I think that our core Xbox fans and players have invested up to 25 years of themselves in these universes and our console. I want to make sure everybody knows I’m committed to Xbox, starting with the console. We’re going to keep meeting players where they are – the world continues to evolve and change. We’re going to make sure Xbox is a great place for developers and players.

Asha Sharma, Microsoft Gaming CEO, via Windows Central

We’re keen to see how this philosophy aligns with recent rumors that suggest the next-gen Xbox was described as being “a gaming PC” based on Windows 11. Especially considering the fact that the original Xbox was built using off-the-shelf PC parts at the time, such as an Intel Pentium processor and an Nvidia GPU. The final product was still a console; there’s no denying that, but it was closer to a PC than other console designs at the time.

She made it clear that nothing is off the table when it comes to strategy, but she also said she needs time to understand why previous decisions were made. Instead of focusing on short-term gains, she is looking at lifetime value and the long-term health of the ecosystem. In simple terms, she wants to study the data before making major changes. However, she confirmed that more announcements regarding hardware are coming soon, signaling that console investment remains a priority.

Xbox Chief Content Officer Matt Booty also reinforced that Xbox is not shifting into a pure publishing model. He stated that the studio system is built around being first-party and deeply integrated with hardware development. That partnership between games and platform remains central to Xbox’s identity.

Another key topic was artificial intelligence. Given Sharma’s previous work within Microsoft’s AI division, some fans feared that Xbox would push heavily into AI-generated content. She firmly rejected that idea. Sharma stated that while AI can be a helpful tool in development, Xbox will not flood its ecosystem with low-quality, automated output. Booty added that there are no directives forcing teams to adopt AI, and that creativity will remain driven by real developers.

About the Author

Abdul Haddi

Abdul is a tech writer and Editor for PC Guide, specializing in all things tech, gaming, and hardware.