The CEO of Xbox has reportedly cautioned that the company may struggle to thrive if it continues to depend solely on its existing franchises

Asha Sharma, the head of Xbox, reportedly communicated to team members that relying solely on well-established game series could threaten the company's future.

In a recent internal meeting (as reported by Windows Central), Sharma emphasized the necessity for Xbox to actively develop sustainable new intellectual properties, stating that the company "must innovate with courage and new IPs to draw new audiences."

Sharma indicated that the company is supporting its major franchises while aiming for Xbox's successful games to evolve into global billion-dollar brands.

Before Sharma’s leadership, Xbox had discontinued several new IP ventures, including prominent projects like Rare's Everwild, ZeniMax Online Studios' Project Blackbird, and Ninja Theory's Project Mara.

Recently, Xbox proposed closing Ninja Theory as part of a strategic company "reset", which involved an estimated 3,200 job cuts and the selling off of five studios. Ninja Theory has already begun to reduce its staff.

In the same discussion, Sharma noted that Xbox is experiencing recovery after a significant downturn, asserting that the company is making "the right decisions to reinvest."

Xbox has unveiled a new initiative called Xbox Labs to explore fresh ideas and technologies. This endeavor includes diverse talents such as game makers, engineers, and scientists within the Xbox team.

Xbox Labs seeks to revamp existing concepts rather than starting a completely fresh project, similar to the recently announced Xbox XP division. The Labs initiative aims to facilitate easier game access, rejuvenate classic games, and empower more players to participate in game creation.

An Xbox representative informed GamesIndustry.biz that the newly-formed team is not obligated to incorporate AI or other specific technologies, instead employing them as circumstances require.

Focused on expanding transmedia brands, the Xbox XP division, directed by Kayleen Walters—who leads Mojang Studios and has a notable background at Microsoft and Lucasfilm—will manage projects including the upcoming Fallout TV series and a Minecraft-themed park.