Microsoft Xbox Reportedly Preparing Major Gaming Announcement as Fans Expect New Hardware and Games
Microsoft Xbox – Microsoft has announced Xbox Reset 2026, one of the biggest gaming overhauls in years, as revenue has struggled, hardware costs have increased and years of rapid growth have taken a toll. Xbox’s new CEO Asha Sharma has announced a 100-day overhaul that will focus on profitability, transform Xbox Game Pass, increase the prices of consoles and prioritize major franchises like Fallout and The Elder Scrolls.
Rhythm Heaven Groove Returns After a Decade With More Than 100 Rhythm Games and New ChallengesLeadership changes began in February 2026 when Phil Spencer left, followed by Sarah Bond. Sharma became Xbox CEO, while Matt Booty was appointed chief content officer. Microsoft also ended its “This is an Xbox” campaign, lowered Game Pass prices after subscriber declines, confirmed development of new premium hardware codenamed Project Helix, and rebranded Microsoft Gaming as Xbox.
Layoffs, Studio Changes and Game Pass Strategy
A major turning point came on June 10 when reports revealed planned layoffs across Xbox. Microsoft said the restructuring is aimed at improving long-term sustainability. Studios reportedly facing possible closures or restructuring include Arkane Studios, Undead Labs, Compulsion Games, Double Fine, and Ninja Theory, putting projects such as Marvel’s Blade, State of Decay 3, South of Midnight, Psychonauts, and Hellblade at risk of delays.
Microsoft is also revising its digital strategy. Reports suggest the company is exploring technology that would convert a physical game disc into a permanent digital license that could be shared or resold. At the same time, Xbox is reassessing Game Pass. Industry consultant Fernando Rizo said talks with some indie developers have been paused, while Call of Duty: Modern Warfare 4 is not expected to launch on Game Pass on day one.
Console Price Hikes and Bigger Focus on Fallout
Starting August 1, 2026, Xbox Series S and Series X consoles will become more expensive, and the 2 TB Xbox Series X will be discontinued. Microsoft says overall gaming investment will remain steady but more resources will be directed toward flagship franchises, making Fallout and The Elder Scrolls central to Xbox’s future strategy.
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Polygon – Microsoft’s 100-day Xbox Reset follows major leadership changes, planned layoffs, Game Pass strategy revisions, higher console prices, and a stronger focus on digital gaming and new hardware.
Reports also suggest several Xbox studios and projects—including Arkane Studios, Undead Labs, and Project Fantasy—have been affected by restructuring and funding changes.
The overhaul marks one of Xbox’s biggest business restructurings, aimed at improving long-term profitability and reshaping the future of the Xbox ecosystem.
IGN – Microsoft is prioritizing major franchises like Fallout and The Elder Scrolls, while maintaining its overall gaming investment despite ongoing restructuring.
Fallout 5 remains planned after The Elder Scrolls 6, and Microsoft has not confirmed any Fallout remasters, though Obsidian is frequently linked by fans to a future Fallout project.
Former Bethesda developer Bruce Nesmith cautioned that rushing new Fallout games could hurt quality and lead to fan fatigue.
The Verge – No source support for a “100-day Xbox Reset,” digital-first shift, or Fallout/Elder Scrolls plans.
Arkane, Undead Labs, and Bruce Nesmith claims are also not mentioned.
Only confirmed detail is Project Fantasy facing publishing/restructuring issues.
Player.one – Microsoft acquired ZeniMax Media for $7.5 billion (2021) and Activision Blizzard for $68.7 billion (2023).
Double Fine Productions, Ninja Theory, and Compulsion Games are Xbox-owned studios behind Psychonauts 2, Senua’s Saga: Hellblade II, and South of Midnight.
Microsoft has not officially confirmed any Xbox studio closures, layoffs, or restructuring plans.
