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'Xbox Is Being Sunsetted' — Seamus Blackley, One of the Creators of Xbox, Thinks Recent Shakeup Spells the End for Microsoft's Gaming Business

Seamus Blackley claims AI-first leadership could phase out traditional Xbox games despite Microsoft’s assurances of ongoing titles and console plans.

  • Following the shakeup, Blackley said Xbox is `being sunsetted`, citing Sharma's AI background and leadership changes as evidence.
  • Microsoft's AI priorities, Blackley says, drove the shift because Nadella believes AI will `subsume` games, indicating a strategic focus on AI over traditional gaming.
  • Blackley, who helped create Xbox, called Sharma a `palliative care doctor` who slides Xbox gently into the night, recalling presenting Xbox with Bill Gates at Comdex long ago.
  • Questions remain over whether Sharma will cancel planned titles and a new Xbox, despite Microsoft's statements contradicting Blackley's wind-down claim.
  • Sharma's pledges and Microsoft's content position create mixed signals about the future, as she vows `no tolerance for bad AI` despite games being Microsoft's sole content business.
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One of the big surprises that has taken place last week was, without a doubt, Phil Spencer's departure from the company he had been working on for decades. Asha Sharma's arrival as the brand's new manager seemed to bring new ideas that are focused on video games and consoles, however, it seems that Xbox co-founder Seamus Blackley believes that Xbox will slowly go out and that Sharma will act as a kind of doctor giving palliative care to the bran…

·Spain
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NewsGaming.net For the co-founder of Xbox, this is the beginning of the end following the appointment of Asha Sharma as CEO We tend too quickly to bury some companies in this environment, even in an industry that chained the closures in turn. Yet, Seamus Blackley, co-founder of Xbox (he left the company in 2002), thinks that it is already necessary to prepare to see the brand disappear in the next few years, the fault for a change of direction t…

Seamus Blackley believes Xbox is already retreating internally – in favor of Microsoft's AI strategy under Satya Nadela.

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Bias Distribution

  • 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left

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The Edvocate broke the news in on Monday, February 23, 2026.
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