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Home » Xbox co-founder believes it’s being ‘sunsetted’ in favour of AI, calls new CEO ‘a palliative care physician’
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Xbox co-founder believes it’s being ‘sunsetted’ in favour of AI, calls new CEO ‘a palliative care physician’

Editorial TeamBy Editorial TeamFebruary 23, 2026No Comments5 Mins Read
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Xbox co-founder believes it’s being ‘sunsetted’ in favour of AI, calls new CEO ‘a palliative care physician’
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Xbox co-founder Seamus Blackley believes that Microsoft’s gaming model is being “sunsetted”, and that its new CEO has been introduced in “as a palliative care physician who slides Xbox gently into the night time”.

The sport designer and business veteran made the feedback in an interview with GamesBeat, through which he reacted to final week’s information that former AI government Asha Sharma is changing Phil Spencer in a significant shakeup of Xbox’s management workforce.

Blackley – who left Microsoft in 2002 after launching the unique Xbox – mentioned that he believes Sharma’s appointment over these with a background in video video games signifies that Microsoft’s gaming future might be dominated by generative AI.

He additionally praised outgoing boss Phil Spencer, who he mentioned had doubtless been worn out spending a very long time “managing the beast in order that he might proceed to attempt to do the suitable factor for video games”.

“Satya Nadella has made an unbelievable variety of bets and invested an unbelievable sum of money and credibility within the rework mannequin AI future,” Blackley mentioned. “Xbox, like lots of companies that aren’t the core AI enterprise, is being sunsetted. They don’t say that, however that’s what’s occurring. I count on that the brand new CEO, Asha Sharma, her job goes to be as a palliative care physician who slides Xbox gently into the night time.

“It simply appears actually true,” he continued. “I think about asking someone if it made sense to place a significant movement image studio into the arms of someone who didn’t like motion pictures, or a significant report label into the arms of someone who’d by no means seen a stay present. Why would you do this? Properly, you solely do this for those who’re trying on the downside in a extra summary approach.

Xbox co-founder Seamus Blackley believes Microsoft’s gaming future might be dominated by AI.

“The pure consequence of the concentrate on AI is that AI abstracts each downside from the minds of the executives who consider in it. We’re abstracting the issue of video games as effectively. There’s a core perception, and you’ll see it in what Satya mentioned, that AI will subsume video games like it would subsume all the pieces.”

The Xbox co-founder mentioned he believes that, “whether or not or not you agree with” generative AI, Microsoft is ushering all of its enterprise models in the direction of it, together with gaming.

“That’s on no account shocking,” he mentioned. “It will have been surprising if they’d someone in there in a significant position who was keen about video games, passionate concerning the creator-driven enterprise of video games, as a result of it will be in direct battle with all the pieces else Microsoft is doing.

“Microsoft is an organization that’s now about enabling its clients by enabling AI to drive issues. That’s at odds with the auteur mannequin of any artwork, however particularly of video games. Microsoft doesn’t have the issue that Apple does, or that Netflix does, the place they’ve an auteur-driven content material mannequin to handle. Video games are the one place the place they’ve a content material enterprise.”

In her becoming a member of assertion revealed final week, incoming Xbox CEO Sharma particularly highlighted AI’s future position inside the gaming division, claiming that Microsoft received’t flood its video games with “soulless AI slop”. “AI has lengthy been a part of gaming and can proceed to be,” she mentioned, noting that gaming wants new “development engines,” however that “nice tales are created by people.”

Asha Sharma and Matt Booty.
New Xbox CEO Asha Sharma and No. 2 Matt Booty.

Blackley, nevertheless, dismissed the feedback as “what each single one that’s been introduced into video games from different industries has mentioned once they’re employed, in each press launch, in all probability going again longer than you and I’ve been on this enterprise.”

He additionally shared some recommendation for the brand new Xbox boss, urging the exec to “go away this job quickly” if she will’t develop a ardour for video games, and urging her to talk to former video games leaders for recommendation.

“If you wish to search for individuals to emulate, you have a look at Shuhei Yoshida,” he mentioned. “I’d inform her to go and spend a day with Shu. Go and spend a day with Peter Moore. Go and spend a day with Phil Harrison.

“Go and spend a day, for those who can, with a number of the guys from Nintendo. Discover Reggie. Spend a day with Reggie. Go and speak to these leaders about how they succeeded and failed within the enterprise. Study from them. Don’t attempt to make it up by yourself. Go get that information. They’re all on the market.

“I’m positive Reggie–shit, there’s a recently-departed government from Nintendo who could be very attention-grabbing for her to speak to, proper? That will be my recommendation. Go speak to all of these individuals.”