More than two decades after helping launch Xbox, Seamus Blackley now questions its future inside Microsoft. In a recent interview with GamesBeat, the Xbox co-founder said he believes the company is slowly repositioning the gaming brand during what he sees as an AI-driven leadership shift.
Blackley was part of the original team that persuaded Bill Gates and Steve Ballmer to approve the Xbox console project over 26 years ago. At that time, Microsoft entered gaming with clear ambition. Today, Blackley argues the company’s larger priorities may be moving in a different direction.
His concerns come as Microsoft reshapes Xbox leadership. The company recently announced that Asha Sharma will replace Phil Spencer as CEO of Xbox. Sharma’s career has focused on artificial intelligence and software as a service. Meanwhile, COO and president Sarah Bond is set to leave the company.
Blackley did not hold back. He said Sharma’s role may resemble that of “a palliative care doctor who slides Xbox gently into the night.” In his view, CEO Satya Nadella’s push into generative AI has changed Microsoft’s internal focus. As a result, every division, including Xbox, may now align with that AI strategy.
He believes the leadership choice sends a strong signal. To explain his point, he compared it to putting someone who does not enjoy movies in charge of a major film studio. For Blackley, passion for gaming matters at the top. Therefore, he advised Sharma to either build a real interest in gaming or step aside from the position.
So far, Microsoft has not announced any plan to shut down Xbox. The company continues to invest in gaming hardware, software, and services. However, Blackley’s comments highlight a broader concern. As Microsoft increases spending on generative AI, some observers wonder how that focus could shape the long-term path of the Xbox platform.
For now, Xbox remains a key brand within Microsoft. Still, the debate reflects a larger question about identity. Can a company chase AI dominance while preserving the culture that built one of gaming’s most recognized platforms?
