Xbox’s Turnaround Efforts “Haven’t Changed a Thing,” Expert Says — 5ch Reacts

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The story

A U.S. gaming site reported that Circana analyst Mat Piscatella said none of the measures Xbox CEO Asha Sharma has taken to turn the business around have had any effect. On 5ch’s console-wars (geha) board, posters compared this to the era of former chief Phil Spencer, speculated that Xbox itself could be restructured or sold off as Microsoft pours its capital into AI investment, and split over how to read the numbers behind the scale of the business’s value.

Xbox CEO Asha Sharma has taken various steps

to get the Xbox business back on track, but none of them

has had any effect — according to Circana analyst Mat Piscatella

Source: gamespot.com / Original article here

What people said

11AnonymousOct 31, 2026 08:05
If Phil were still in charge it would've dropped 30% —
they held the decline to 20%.
Doing alright, honestly.
15AnonymousOct 31, 2026 08:13
Phil's parting gift of losses was so bad that just breaking even already counts as a win.
Microsoft proper doesn't care about anything but AI anyway.
17AnonymousOct 31, 2026 08:19
Re: #11
Re: #15
Just a little while ago everyone was gushing that Phil was a genius and everything he did was right.
The second he gets fired, suddenly it's "he was always incompetent, nothing but failures the whole time" — rewriting history like that is rough.
18AnonymousOct 31, 2026 08:20
Re: #15
It's still a net loss though lol
19AnonymousOct 31, 2026 08:22
Re: #15
Cutting Gears off PS is literally what's accelerating the losses, I'm telling you
23AnonymousOct 31, 2026 08:28
Despite all the smear campaigning being for nothing, looks like both "eday" and the Evolve bundle sold out on Amazon US.
28AnonymousOct 31, 2026 08:32
Re: #23
Lol this guy still thinks he's fighting the good fight
Embarrassing — just come home already lol
30AnonymousOct 31, 2026 08:37
At the very least, if they were actually planning to sell, I'd think they'd be pushing more stuff onto PS to grab some short-term profit first.
34AnonymousOct 31, 2026 08:45
Re: #30
At this size it's probably too huge for anyone to even raise the money to buy it.
Looking at how the reorg is shaping up, it feels like Microsoft is keeping only the hardware division directly under itself and folding game development into Activision and ZeniMax.
So it sort of feels like they're planning to split off hardware and games and sell them separately.
And reading today's move as also cleaning up the Gears division still sitting directly under MS… eh, that might be reading too much into it.
49AnonymousOct 31, 2026 09:10
Re: #30
Then let me ask — if they have no intention of selling and plan to fight it out, why did they just start offering buyouts to the entire workforce?
Once the talented people decide to walk, there's no stopping them.
33AnonymousOct 31, 2026 08:44
Even making Gears exclusive just cuts revenue from PS — the Xbox console itself still won't sell any better.
37AnonymousOct 31, 2026 08:48
Re: #33
I think the urgent priority right now is building a solid distribution network and actually keeping it on retail shelves.
38AnonymousOct 31, 2026 08:51
With Xbox exclusives, everyone just assumes "it'll show up elsewhere eventually anyway," so it's pointless unless they actually commit to sticking with it.
43AnonymousOct 31, 2026 09:04
Re: #38
Anyway, next month Skyrim's 15th anniversary overlaps with the Xbox 25th anniversary event, so I'm curious what gets announced.

They should also reveal details on Helix, which they teased would get "more info before year's end."
40AnonymousOct 31, 2026 08:52
PS-bashing is picking up again,
so it looks like the bad news for Xbox isn't done yet.
41AnonymousOct 31, 2026 08:55
Re: #40
Lol, the reverse pattern
57AnonymousOct 31, 2026 09:22
Re: #52
No — given they need investment capital more than ever, if they cashed out by selling off the entire game business, that'd be a meaningful sum even for the AI business.
If there were nowhere else to invest, they might just leave the game business alone even running at a loss or breakeven.
But in the current "pour everything into AI, slash headcount and every other cost just to fund AI, invest or die" mode,
a low-margin business just sitting idle gives them a real motive to sell it and cash out.
88AnonymousOct 31, 2026 10:12
Re: #57
Even liquidating the whole game business only gets you into the tens or hundreds of billions range, right?
AI is a fight measured in the tens of trillions, even hundreds of trillions.
What good does a few percent in cash do?
89AnonymousOct 31, 2026 10:20
Re: #88
Can't tell if you're talking yen or dollars, but —
in dollars, MS's AI investment runs around $200 billion a year.
As for game company valuations: Activision is worth about $70 billion, EA about $50 billion.
Microsoft's whole gaming business is estimated around $150 billion.
At minimum the numbers you quoted are off by an order of magnitude — looks like you're mixing up yen and dollars in your head.
90AnonymousOct 31, 2026 10:24
Re: #88
Wouldn't that still amount to a few percent in cash though?
And conversely, what's the point of tying up money in a business with negative returns?
62AnonymousOct 31, 2026 09:26
Investing in AI has a future, but investing in games only makes sense if you're actually a game company — otherwise it's stopped meaning much.
Games used to be the cutting edge of hardware performance, after all.
67AnonymousOct 31, 2026 09:35
Re: #62
Yeah, pretty much.
MS originally got into this back when people were saying TVs hooked up to set-top boxes would conquer the living room — it's a product of that era.
In reality that turned out to be smartphones, and MS whiffed badly there.
Now it's clear the games industry is ultimately just one genre of entertainment, nothing more.
So a company like MS treating it as a serious strategic investment has become a shaky proposition.
69AnonymousOct 31, 2026 09:38
Making something exclusive when you don't even make the hardware yourself can only ever hurt total sales, I'd think.
72AnonymousOct 31, 2026 09:41
Re: #69
That game will definitely end up on the next-gen console.
70AnonymousOct 31, 2026 09:40
If they actually made TES6 a console exclusive on Xbox, that'd be something — I'm genuinely curious if they have the guts to do it.
73AnonymousOct 31, 2026 09:46
Re: #70
They've already been hinting at it, so I'd call it basically confirmed.

Microsoft: "How would you feel if Xbox titles and Minecraft pulled out of Switch and PS5?"
https://krsw.5ch.io/test/read.cgi/ghard/1792024590/

Asha's probably going to scrap Game Pass Day One before too long,
and the only thing that could offset that is Xbox exclusivity.
75AnonymousOct 31, 2026 09:52
Re: #70
TES3 Morrowind was console-exclusive to the original Xbox, and TES4 Oblivion didn't hit PS3 until a year after the PC/Xbox release.
So it wouldn't be weird at all if TES6 "Sentinel" ends up PC/Xbox only 🙄
76AnonymousOct 31, 2026 09:53
I doubt any next-gen console is going to work out anywhere.
The pricing alone is going to be brutal.
Even with Switch, the original is still selling right alongside Switch 2 —
so a PS6 or new Xbox would be even less viable.
They'll just have to keep selling PS5 and Xbox Series side by side, and I think the old generation stays the mainstay regardless.
80AnonymousOct 31, 2026 09:56
Re: #76
Current-gen consoles are already stupidly expensive, so I'm fine with it getting shelved another 5 years.
Though I don't know if my XSX will even last that long.
92AnonymousOct 31, 2026 10:34
Some people are lumping the sale and the layoffs together, but any company or fund big enough to buy something the size of Xbox probably doesn't want extra mess happening beforehand.
93AnonymousOct 31, 2026 10:40
Re: #92
What do you mean by "extra mess"?
Slashing staff and cutting services to prep a business for sale is a totally normal step every company goes through.
94AnonymousOct 31, 2026 10:45
Re: #93
Is it really plausible to gut the headcount of a "consumer hardware business" — where manpower matters more than almost anything — and then sell it off?
It's not like a buyer would just be after Xbox's IP, right?
96AnonymousOct 31, 2026 10:50
Re: #93
So a platform holder shrinks itself down and then says "please buy us"? This isn't some ordinary business — it's a platform.

Background and key points of this topic

Circana is a market research firm that tracks sales trends in the games industry, and analyst Mat Piscatella is known for regularly publishing North American hardware and software sales figures. Xbox’s leadership has transitioned from Phil Spencer to Asha Sharma, and the thread also buzzed about how opinions of Spencer’s tenure shifted before and after the handover. Where opinions split was over whether Microsoft, as it concentrates capital on AI investment, will end up selling off the Xbox business — with posters disagreeing on whether the proceeds of a sale would be large or small relative to the valuations of companies like Activision and EA. Note that the claim about restructuring (voluntary buyouts) being underway was only raised within the replies themselves; the source article simply reports the analysis that “existing turnaround measures haven’t had any effect,” not a confirmed decision to sell the business.

*This article is excerpted and summarized from the 5ch (Hardware/Industry [Geha]) thread “[Good News] The Xbox Goddess Asha’s Effect Is Starting to Show!!!!!!.”

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