Microsoft Gaming Rebrands to Xbox and Shifts Strategy to Prioritize Daily Active Player Metrics

Microsoft Gaming rebrands as Xbox under CEO Asha Sharma, prioritizing daily active players and sustainable Game Pass pricing over traditional exclusivity.

By: AXL Media

Published: Apr 24, 2026, 11:16 AM EDT

Source: Information for this report was sourced from GamesIndustry.biz

Unified Identity and Ambitious New Leadership

Microsoft is officially reverting its interactive entertainment division back to the Xbox brand, moving away from the Microsoft Gaming nomenclature adopted during the Activision Blizzard acquisition. In a memo released via Xbox Wire, CEO Asha Sharma and CCO Matt Booty explained that the previous name reflected corporate structure but failed to capture the brand’s ultimate ambition. Under this new leadership, the company is shifting its primary focus toward daily active players as the central metric for success. This "north star" KPI will guide future investments in hardware, content, and services, signaling a departure from the traditional console wars toward a more ecosystem,centric model.

Strategic Pivot on Exclusivity and Intelligence

The transition to a unified Xbox brand brings with it a significant reevaluation of long standing industry norms. Sharma and Booty indicated that the company is currently reconsidering its approach to exclusivity windowing, potentially opening the door for more multiplatform releases or altered timing for Xbox titles. Additionally, the leadership team plans to reexamine the role of artificial intelligence within the development and player experience pipelines. These internal reviews suggest that the previous business models used by the firm are no longer considered sufficient for driving the next phase of growth in an increasingly competitive global market.

Sustainable Growth Through Flexible Pricing

In a direct response to player feedback regarding rising costs, Xbox has implemented a strategy of flexible pricing for its flagship subscription services. Earlier this week, the firm reduced the cost of Game Pass Ultimate from $29.99 to $22.99 per month, while PC Game Pass was lowered to $13.99. CEO Asha Sharma admitted in internal communications that the service had become too expensive for the average consumer, particularly after a massive 50% price hike in late 2025. By seeking a more sustainable financial model, Xbox hopes to maintain durable growth and ensure that Game Pass remains a central pillar of its player,first philosophy.