Rumors of Xbox shutting down in 2023 are not unfounded. Microsoft has been hit hard over the last year, and first-party Xbox games during this time have been largely a disappointment. A lot of fans were looking to the Xbox console exclusive Redfall by Arkane Studios to bring some excitement back to the Xbox catalog, but reviews have called the game middling at best. Both the quantity and quality of first-party games have dampened the future of Xbox Series X|S. In addition, the UK’s CMA has recently prevented the merger between Microsoft and Activision, a deal that both companies expected would be approved.
Will Xbox Be Shut Down in 2023?
There are no major signs that Xbox will be shutting down outright in 2023, but it will need to turn things around.
According to insider Jeff Grubb on the Game Mess podcast in April 2023, Microsoft is not happy with the Xbox gaming division. Xbox did not release a major first-party game in 2022, and according to him, “a lot of people do regret getting their Xbox.”
Xbox has been putting a lot of its effort behind Xbox Game Pass, and while I called the subscription service one of the best deals in gaming back in November 2022, it’s only as good as its catalogue. Without strong first-party content, there’s not much that separates it from Sony’s PlayStation Plus, which is only growing in strength. Microsoft even admitted in 2022 that PlayStation exclusives God of War and Spider-Man are better than Xbox exclusives.
The main upcoming Xbox exclusive that fans are banking on is Starfield. So far, it looks like it has the scope and vision to become a top-seller, but we haven’t seen too much gameplay yet of the game and Bethesda is sadly known for releasing fairly buggy games at launch. That said, a Starfield-focused standalone show that has been confirmed to air on June 11 with the game now set to release on September 6 after being pushed back multiple times.
That’s a lot of pressure, though, to place on one game that won’t be coming out until the fall. Xbox game studios Bethesda and Halo’s 343 Industries were also impacted by layoffs in January, with 343 Industries being hit particularly hard, which will make it even harder for Xbox first-party games to make a comeback.
Microsoft has also been disappointed by UK regulators denying its acquisition of Activision for possibly up to 10 years. While Microsoft and Activision are appealing the decision, this is still a hard blow to the growth of Xbox.
All told, the momentum for Xbox is at a low point and it will likely stay at a low point for awhile. But that doesn’t mean that Microsoft is closing its Xbox gaming division anytime soon. However, some bold decisions need to be made to improve its first-party catalog and give Xbox fans something to cheer about.
