Microsoft made a string of controversial decisions over the past couple of years, arguably across its entire stack. Whether it's AI, Windows design decisions, or de-emphasis on Surface — few have been as prolifically controversial as Xbox.
Xbox ended the practice of exclusive games for its first-party studios, effectively robbing Xbox Series X|S of a unique selling point. Fable, Gears of War, Forza, and even Halo itself will launch on PlayStation, despite the fact that PlayStation is doubling down on exclusive content with a widely-reported mission to pull games from Steam and Windows PC.
In attempts to explain its mission, Xbox commissioned a new marketing campaign, dubbed "This is an Xbox." This controversial marketing beat tried to promote Xbox as an "everywhere" kind of brand. Xbox has been leaning hard into the trend that people increasingly just play games wherever and aren't explicitly loyal to a specific platform.
I wrote previously about how the "This is an Xbox" marketing campaign didn't make a lot of sense. It seemed to promote the idea of not buying Xbox products. I haven't been able to find a similar marketing campaign in history that actively discouraged users from buying the promoting company's products. It also targeted users who, by Microsoft's own analysis, are not brand loyal and would inevitably gloss over this type of marketing.
The marketing campaign proved controversial both with Xbox customers and fans, as you might expect, but also internally, as many Xbox staffers I spoke to felt like their efforts were being undermined to promote competing products and platforms. Indeed, Microsoft partnered with the likes of Samsung and LG on "This is an Xbox" ads, which actively discouraged users from buying Xbox hardware, and instead subscribe to Xbox Cloud Gaming via their phones or TVs instead.
Either way, it seems like the controversy had already reached incoming CEO Asha Sharma, whose first move after coming on board was to nix the entire campaign.
Websites dedicated to the campaign were shuttered, leaving Xbox watchers wondering if it was a coincidence or a direct result of Asha Sharma's intervention. Microsoft just responded to our request for comment, explaining why it decided to move away here.
"Asha retired 'This is an Xbox' because it didn't feel like Xbox," a Microsoft spokesperson explained. "She is personally leading a reset of how we show up as a brand."
"Asha retired 'This is an Xbox' because it didn't feel like Xbox," a Microsoft spokesperson explained. "She is personally leading a reset of how we show up as a brand."
Microsoft hasn't always been great at marketing. The Surface RT launch was notoriously mocked for an ad showing dance choreography rather than the actual device, for example. It took the feedback on board, though, and followed up with some pretty legendary ads for the Surface Studio and the Surface Book.
Xbox has had some pretty strong eye-catching marketing beats in the past, but has arguably struggled here in recent years. The Xbox Series X|S sold well out of the gate to passionate fans, but didn't resonate with the wider, less-connected addressable audience. I'm no marketing expert, but the complete lack of visibility for these devices in the public consciousness has to have played a role here, even if general trends point to users being more interested in PC gaming as of late. Nintendo itself has reportedly cut production on the Switch 2 due to missing internal projections, and PlayStation just increased the price of the PS5 by $100 in the U.S. due to global economic conditions. Consoles are undoubtedly having a tough time here, across the board.
Marketing alone won't boost Xbox, but it's a start
New Xbox CEO Asha Sharma has touted a "return to Xbox" in interviews and in comments to staff internally. What that will actually look like remains to be seen, but it seems to be responding to this idea that Microsoft has been chasing imaginary audiences at the cost of what it already has.
Since coming on board, CEO Asha Sharma has re-energized Xbox's internal teams, who told me that Sharma is reducing red tape and approval processes in favor of shipping updates and reacting to feedback more quickly. Indeed, Microsoft has started shipping new "fun" features to the Xbox Series X|S again after a pretty hefty moratorium.
Many game journalists and commentators have focused on Asha Sharma's tenure as an AI exec within Microsoft, but I'm told it's really her expertise in growing massive online audiences that led to her appointment. Instacart and Facebook Messenger are key examples of her experience here.
PC gaming is winning, at least in part, due to its multi-tasking capabilities. Given the rise of multi-monitors and multi-tasking as a key "feature" gamers are increasingly expecting from their gaming sessions these days, having world-class social adjacency tools in Xbox is probably going to form part of her mission, if I had to speculate. How to promote these types of features to the wider audience will be a complex endeavour.
The next-gen Xbox "Helix" was revealed by Asha Sharma a few weeks ago, and it's going to be more PC-like than ever, complete with access to platforms like Steam, Epic Games Store, and more. Breaking down expectations of what an Xbox is and promoting the benefits of Helix will be a complex marketing effort that requires user education as much as it will need to emphasize the fun and usability factor. But price challenges remain a hefty consideration for Microsoft here, regardless of the marketing quality. It'll be interesting watching how Asha Sharma repositions Xbox here, given her social media savviness.
Poll: Did you like the "This is an Xbox" campaign?
The "This is an Xbox" marketing campaign aimed to show that Xbox features are available basically everywhere, including Xbox Cloud Gaming and Xbox PC, but some felt like it came at the cost of promoting not buying Xbox hardware. What do you think?
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