Former PlayStation boss Shawn Layden has offered new Xbox CEO Asha Sharma advice for navigating the company's current restructuring: "pick a lane." Layden likened Xbox's present challenges to Sega's "Dreamcast moment," the pivotal decision that led the company to exit the console hardware business and focus on software development.
This advice comes as Xbox undergoes significant changes, including substantial layoffs, studio closures or exits, and the cancellation of various game projects. The company is reportedly shifting its focus to fewer, larger franchises, with titles like Halo being moved to Activision.
Layden presented two primary paths for Xbox: either commit to competing directly with PlayStation on the platform level, potentially including the development of next-generation hardware like "Project Helix," or leverage its position as a major game publisher. He highlighted Microsoft's ownership of major studios like Activision, Blizzard, and Bethesda as a strength that could be fully embraced.
"You got to pick a lane," Layden stated in an interview. "Either you're going to be a platform competitive with PlayStation... Or you sit back and realize you are the biggest game publisher in the world... Be that. This is your Dreamcast moment, when Sega decided we're just going to be on PS2 and we're going to get out of the hardware business and just be a great software company."
Microsoft has faced persistent questions about its commitment to console hardware amidst sales figures for the Xbox Series X and S, as well as the previous Xbox One. While company leadership, including CEO Satya Nadella and Sharma, have publicly reaffirmed their dedication to consoles, Sharma has also spoken about the need for "radically different business models" due to the increasing cost of hardware. She noted that it may become difficult for mass audiences to afford the "thousands of dollars" associated with future console generations.
These discussions echo sentiments from former PlayStation executive Shuhei Yoshida, who recently suggested that Sony and Nintendo should extend the lifespan of their current consoles due to escalating costs. The future of Xbox's hardware strategy, including the specifics of "Project Helix" and the extent of its exclusivity deals, remains a subject of significant industry speculation.