The Information: Microsoft CEO Considered Shutting Down Xbox in 2021

The Information has released a report detailing the state of Xbox's gaming division, revealing that Microsoft CEO Satya Nadella considered shutting down the Xbox brand a few years ago.

In 2021, Nadella was reportedly dissatisfied with Xbox's financial performance. He saw two options: either shutter the brand entirely or double down on its strategy of acquiring game studios and expanding Game Pass. Ultimately, Microsoft chose the latter, investing billions of dollars to acquire Bethesda and Activision Blizzard.

However, Game Pass has yet to meet its ambitious targets. Microsoft aimed to reach 100 million subscribers by 2030, but the current subscriber base stands at around 34 million. The report also claims that several major game studios declined offers to feature their titles on the service.

Additionally, Microsoft hoped to use the Xbox platform to attract more companies to its Azure cloud servers. However, many businesses continue to rely on competitors like Google Cloud and Amazon Web Services, or their own infrastructure.

It seems Microsoft has since adjusted its strategy for the Xbox brand. The company has begun porting console exclusives to other platforms. For instance, Indiana Jones and the Great Circle is set to release on PS5 this year, along with other rumored projects.