Xbox Co-founder Says Microsoft is Quietly Sunsetting the Platform

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by msmash

February 26, 2026

AI-Generated Deep Dive Summary

Seamus Blackley, one of the original founders of Xbox, has claimed that Microsoft is quietly sunsetting the platform under the guise of an AI-driven leadership transition. In a recent interview with GamesBeat, Blackley criticized Microsoft's decision to replace Phil Spencer as Xbox CEO with Asha Sharma, whose career has focused on AI and software-as-a-service, rather than gaming expertise. He likened the move to appointing someone who doesn’t understand movies to lead a major film studio, arguing that this shift reflects Satya Nadella’s broader focus on generative AI at the expense of other business units like Xbox. Blackley warned that Sharma may be tasked with “sliding Xbox gently into the night,” suggesting Microsoft is prioritizing its AI initiatives over gaming. The departure of Sarah Bond, Xbox’s COO and president, further fuels speculation about the platform’s future under Sharma’s leadership. Blackley expressed concern that Microsoft’s obsession with AI has turned every division, including Xbox, into a tool for advancing its generative AI agenda. He emphasized that while AI is important, it should not overshadow gaming, which has been a cornerstone of Microsoft’s success. Blackley’s comments highlight the tension between Microsoft’s long-standing commitment to gaming and its current strategic focus on AI-driven innovation. This situation raises critical questions about the future of gaming at Microsoft and whether Xbox will continue to thrive as a standalone platform or be absorbed into broader AI initiatives. Blackley advised Sharma to either develop a genuine passion for gaming or leave the role, underscoring the importance of understanding and valuing the unique culture of gaming. His remarks reflect broader concerns in the tech industry about the potential sidelining of established platforms like Xbox in favor of newer, more buzzworthy technologies. For readers interested in tech, this story highlights the ongoing tension between legacy industries like gaming and emerging trends like AI. It also raises important questions about leadership decisions at major tech companies and how they impact long-term innovation and consumer choices. Black

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Originally published on Slashdot on 2/26/2026