CEO Asha Sharma teases third-party Xbox exclusives, despite slow console sales

Microsoft granted some supporters' wishes by reintroducing Xbox exclusive games like Gears of War: E-Day. While the shooter is a first-party project, CEO Asha Sharma has also hinted at greater third-party exclusivity. Still, that may be unrealistic when considering the component shortage and lagging console sales.

As news of impending layoffs broke, Sharma and Chief Content Officer Matt Booty made the surprising reference in a memo to employees. The executive acknowledged that the company hadn’t invested enough in its valuable franchises. She also said that “a reliable pipeline of first- and third-party exclusives and new IP are critical to our success.”

Third-party exclusives at the Showcase?

The CEO mentioned that some third parties had already appeared at the Xbox Games Showcase. It’s unclear which candidates would meet the criteria, as Microsoft owns the studios developing Gears of War: E-Day and Clockwork Revolution. Nevertheless, the comments have reminded some fans of the Xbox 360 era.

Microsoft offered third-party Xbox exclusives regularly on its first three consoles. The original system boasted the popular Star Wars: Knights of the Old Republic, developed by BioWare and published by LucasArts. The trend continued with titles including Mass Effect and Dead Rising on the Xbox 360.

During the Xbox One lifecycle, that success began to fade. Rise of the Tomb Raider launched as a timed exclusive, but failed to perform as well as the prior multi-platform game. The number of releases then dwindled in the Series X and Series S generation. That said, S.T.A.L.K.E.R. 2: Heart of Chornobyl thrived before it arrived on the PS5 a year later.

The reality of Xbox consoles

The problem for Microsoft is that the Xbox console install base is dwarfed by its PlayStation rival. Increasingly, games like Phantom Blade Zero will, at least initially, skip their systems. Publishers also now realize the potential for multi-platform profits. Even Sony has lost former third-party exclusives from the Final Fantasy series.

Another issue Sharma highlighted in the memo is that the manufacturer is struggling to produce enough hardware to meet demand. The storage and memory shortage has hit Microsoft particularly hard. Whether demand is high is debatable, although there have been signs of a rebound in console sales.

Considering these challenges, it’s difficult to imagine any partners willing to turn away the PS5 or Switch 2.