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09 Oct 2026
23m

Can Xbox Get Back in the Game?

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The Journal.

Xbox faces a critical business turnaround as its previous strategy of prioritizing the Game Pass subscription service over console sales and high-profile titles has faltered. Despite initial growth, the subscription model failed to achieve projected targets, resulting in low profit margins and declining revenue. Under new leadership, the company is shifting away from the streaming-first model to refocus on its core strengths: high-quality hardware and blockbuster franchises like *Call of Duty* and *Halo*. This pivot includes significant workforce reductions, a move away from day-one Game Pass releases for major titles, and a renewed emphasis on the hardcore gaming demographic. These changes represent a strategic retreat from the ambitious, broad-market expansion attempted under former leadership, aiming to restore profitability by returning to the brand's roots as a premium console gaming powerhouse.

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