Asha Sharma from Xbox is still at a crossroads about exclusive games.

Asha Sharma, the new head of Xbox, has been in her role for over 100 days and has yet to establish a clear stance on game exclusivity. During a chat at Bloomberg Tech Live, she once again addressed this controversial topic, but it seems everything is still somewhat uncertain. The dilemma revolves around being a major publisher while also wanting exclusive content.

The Challenge of Exclusivity

Sharma acknowledges the need for exclusive content but emphasizes the importance of reaching gamers everywhere. "I think it’s a complex topic," she said, contemplating the future of exclusivity. "Look, we’re number two among publishers worldwide, and to be amazing, your games need to reach large audiences."

"At the same time, we’re increasingly becoming a platform. For that, we need to have exclusive content, and we’re closely examining this."

She emphasizes that decisions regarding each title must be made carefully, learning from what has already been done in the market.

A Return to Xbox Roots

Since taking over, Sharma has shown interest in "bringing back the Xbox brand." This has resulted in a greater commitment to Xbox hardware but also speculations about changes in exclusivity policy. So far, there are no indications that games for the PS5 will have their releases canceled or that future titles will be restricted to Xbox and PC.

Cutting the price of the Xbox Game Pass has been one of the few concrete actions by Sharma so far, but at the cost of removing Call of Duty from the service.

Understanding the Profit Goal

An interesting revelation during the interview was that Xbox's goal is not to achieve the standard 30% profit margins that Microsoft expects for its software divisions.

"My mandate is not a 30% accountability margin. It’s not an enterprise software margin. It’s to be the leading gaming and entertainment company."

Focusing on being number one in the gaming sector, Sharma doesn’t seem pressured by profits, which, according to reports, would influence Xbox's willingness to release games on rival platforms.

Our View: Sharma is still navigating challenging terrain, but her actions suggest a delicate balance between maintaining exclusivity and reaching as broad an audience as possible. It’s a bold bet but could be crucial for Xbox's future.