Microsoft Brings Back 'Xbox' Gaming Division, Replacing 'Microsoft Gaming', What Happened?

Liputan6.com, Jakarta - On April 23, 2026, a significant change occurred at the tech giant, Microsoft.

The company officially announced the rebranding of its gaming division to 'Xbox,' dropping the previously used 'Microsoft Gaming' identity.

This decision came under the leadership of new Xbox CEO Asha Sharma, who took over in February 2026.

Sharma made this significant announcement during an internal employee meeting, emphasizing that 'Xbox needs to be our identity.'

“To achieve our master plan, the way we work must transform,” Sharma and chief content officer Matt Booty said in the memo, titled “We Are Xbox.”

The name change from 'Microsoft Gaming' back to 'Xbox' was officially announced on April 23, 2026.

Xbox CEO Asha Sharma stated that 'Xbox needs to be our identity,' signaling a clear shift in branding philosophy.

The 'Microsoft Gaming' name itself was adopted in 2022, coinciding with the planned acquisition of Activision Blizzard, and was intended to represent Xbox's growth beyond consoles.

Asha Sharma took over as Xbox CEO in February 2026, succeeding Phil Spencer, who retired after 12 years leading the gaming division and a total of 38 years at Microsoft.

Previous Xbox President Sarah Bond also stepped down as part of this leadership restructuring.

Concurrently, Matt Booty was promoted to Chief Content Officer and EVP of Microsoft Gaming prior to the name change.

In an internal memo titled 'We Are Xbox,' sent to employees, Sharma and Booty outlined a strategic vision focused on 'great games' and 'the future of play.'

Under new leadership, Microsoft is changing the way it measures Xbox's business success, focusing on Daily Active Players (DAI) as its new 'north star'.

Additionally, a new glass-effect Xbox logo has been spotted at Microsoft's headquarters and is being used in internal materials for the ongoing 'Project Helix'.

Microsoft announced a price reduction for Xbox Game Pass the same week as the division's name change.

However, Call of Duty games will no longer be available on Game Pass on launch day, contrary to previous plans.

A new Call of Duty game will be added to Game Pass approximately a year after its initial launch.

Xbox will also explore strategic acquisition opportunities and consider the use of AI, but Sharma has emphasized that there will be no soulless "AI slop."

This change is part of Asha Sharma's effort to revitalize and repair the Xbox brand, which in recent years has faced issues such as high prices, low console sales, and anger over Microsoft's involvement in certain issues.

Sharma stated that 'Microsoft Gaming' described the company's structure but not its ambitions, necessitating a return to a stronger identity.

This shift also comes amid financial pressure on Microsoft's gaming business, with overall revenue down 9% and Xbox hardware revenue down 32%.

Sharma and Booty laid out the challenges for the Xbox team. “We have work to do,” they wrote. “Players are frustrated.”