In April, Microsoft will be rolling out a full-screen "Xbox mode" to all Windows 11 PCs, including laptops, desktops, and tablets. The move follows last week's confirmation of its next-generation Xbox console, known internally as Project Helix, which will be capable of running both Xbox titles and PC games. The Verge reports: Technically, you've been able to try the Xbox Full Screen Experience (FSE) in preview since November 2025, if you were part of both the Windows Insider and Xbox Insider Programs. But it needed work, as well as a better name. When Microsoft originally shipped it on the Asus-designed Xbox Ally and Xbox Ally X handhelds, we were clear: it didn't meaningfully turn a PC experience into an easy-to-use Xbox one. But if Microsoft is putting its full weight behind PC as the future of Xbox gaming, perhaps that will change change.

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An anonymous reader quotes a report from 80 Level: Microsoft has officially confirmed development of its next-generation Xbox console, currently known internally as Project Helix. While concrete details remain limited, early information suggests the company is positioning the device as a hybrid between a traditional console and a gaming PC, capable of running both Xbox titles and PC games. The codename was revealed recently by new Xbox CEO Asha Sharma, who reaffirmed Microsoft's continued commitment to dedicated gaming hardware despite speculation that the company might shift entirely toward cloud or platform-based ecosystems. According to Sharma, Project Helix represents the next step in Xbox's console strategy. Although official specifications have not yet been announced, early reports indicate the system will likely rely on a new AMD system-on-chip combining Xbox hardware with PC-style architecture. The device is expected to emphasize high performance while maintaining compatibility with existing Xbox game libraries. [...] If the concept holds, Project Helix could mark a significant shift in how console ecosystems are structured, moving away from tightly closed hardware platforms toward something closer to a unified PC-console environment. Sharma wrote in a post on X: "Great start to the morning with Team Xbox, where we talked about our commitment to the return of Xbox, including Project Helix, the code name for our next generation console. Project Helix will lead in performance and play your Xbox and PC games. Looking forward to chatting about this more with partners and studios at my first GDC next week!"

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Seamus Blackley, one of the original founders of Xbox who helped convince Bill Gates and Steve Ballmer to back a console project more than 26 years ago, told GamesBeat in an interview that he believes Microsoft is quietly sunsetting the platform under the guise of an AI-driven leadership transition. Microsoft recently announced that Asha Sharma, whose career has focused on AI and software as a service, will replace Phil Spencer as Xbox CEO, and that COO and president Sarah Bond is leaving the company. Blackley said he expects Sharma's role to be that of "a palliative care doctor who slides Xbox gently into the night," arguing that Satya Nadella's all-consuming bet on generative AI has turned every business unit -- Xbox included -- into a nail for the same hammer. He compared the appointment to putting someone who doesn't like movies in charge of a major motion picture studio, and advised Sharma to either develop a genuine passion for games or find a way to leave the job soon.

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In her first major interview as Microsoft's new gaming chief, Asha Sharma said that "great games" must deliver emotional resonance and a distinct creative voice, while making clear that she has "no tolerance for bad AI." Stepping in after Phil Spencer's retirement, she's pledging consistency, community trust, and a human-first approach to storytelling as Xbox enters a new era. Variety reports: Sharma was quick in laying out her top priorities for Microsoft Gaming in an internal memo announcing her promotion, noting "great games," "the return of Xbox" and the "future of play" as her three main commitments to the gaming community. So first, what makes a great game for Sharma, whose roles prior to CoreAI include top positions at Instacart and Meta? The new Microsoft Gaming CEO tells Variety it's all about games with "deep emotional resonance" and "a distinct point of view." She wants to develop stories that make players "feel something," like the kind of feelings Campo Santo's 2016 first-person mystery "Firewatch" elicited in her. Sharma takes on the mantle as head of the leading competitor to Sony's PlayStation and Nintendo knowing full well she's entering the role as an outsider to the larger gaming community and has "a lot to learn" still. But Sharma says she's got a commitment to "being grounded in what the community is telling us." "I'm coming into gaming as a platform builder," Sharma said, adding that her goal is to "earn the right to be trusted by players and developers" and show the fanbase that "consistency" over time. In her interview with Variety, Sharma acknowledged the tumultuous state of the gaming industry, referencing Matthew Ball's recent State of Video Gaming in 2026 report as evidence that the larger "transformation" of the sector is "protecting what we believe in while remaining open-minded about the future." Due to her strong background in AI, initial reactions to Sharma's appointment have raised concerns about what her specific views are on the use of generative AI in game development. Sharma says her stance is simple: she has "no tolerance for bad AI." "AI has long been part of gaming and will continue to be," Sharma said, noting that gaming needs new "growth engines," but that "great stories are created by humans."

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Xbox chief and Microsoft Gaming CEO Phil Spencer is leaving Microsoft after nearly 40 years at the company. "Meanwhile, Xbox President Sarah Bond, "long thought by many both inside and outside of Microsoft to be Spencer's heir apparent, has resigned," reports IGN. From the report: The new CEO of Microsoft Gaming will be Asha Sharma, currently the President of Microsoft's CoreAI product. Finally, Xbox Game Studios head Matt Booty is being promoted to Chief Content Officer and will work closely with Sharma. "I want to thank Phil for his extraordinary leadership and partnership," Microsoft CEO Satya Nadella said in an email sent to Microsoft staff. "Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it." [...] Spencer was named Head of Xbox in March of 2014, when he was tasked with righting a ship that had made a number of product choices and policy decisions that rubbed core gamers the wrong way in the run-up to the launch of the Xbox One in Fall 2013. Long hailed by gamers as being one of their own, Spencer could frequently be found on Xbox Live, playing games regularly with fellow Xbox gamers and racking up a healthy Gamerscore. His first major move when put in charge was decoupling the Kinect 2.0 peripheral from the Xbox One package, thus immediately reducing the new console's price by $100 to $399, matching the day-one price of Sony's PlayStation 4. He spearheaded the much-heralded backwards compatibility movement within Xbox, the Xbox Game Pass service was born under his watch, and accessibility made major advances during his tenure in both hardware and software. Xbox Play Anywhere, which sought to let gamers play their Xbox games on any device, be it a PC, console, or handheld, isn't new but has been a big recent focal point. Spencer's time running Xbox will perhaps be most remembered for Microsoft's $69 billion acquisition of Activision-Blizzard-King in 2022, which took almost two years to achieve regulatory approval from various agencies around the world. But Spencer began trying to solve for Xbox's dearth of first-party games in 2018, when the first wave of studio acquisitions occurred. Prior to the Activision deal, Spencer's biggest move came with the $7.5 billion acquisition of ZeniMax, parent company of Bethesda, in 2020. The deal gave Xbox total ownership of Bethesda Game Studios and its Fallout and Elder Scrolls franchises along with id Software and its Doom and Quake IPs, among many others. Questions arose from there about whether or not that meant all of Xbox's new studios would produce games exclusively for Xbox consoles, and while some games were kept off of PlayStation platforms temporarily, many weren't and most now seem to come to PS5 eventually, if not on day one.

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An anonymous reader shares a report: Speaking during an earnings call on Tuesday, CEO Lisa Su stated that its development of Microsoft's next-gen Xbox SoC is "progressing well to support a launch in 2027." While the comment doesn't outright confirm the next Xbox will release next year, it indicates that the Microsoft could be ready to launch soon.

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