Xbox to Pivot Resources Toward Fallout, Elder Scrolls, and Halo

Xbox is looking to shake up its internal structure as it attempts to move past a difficult period for its console lineup. Following a 2025 performance that saw major titles like The Outer Worlds 2, Avowed, and Forza Motorsport fail to meet expectations, newly-appointed CEO Asha Sharma is reportedly preparing a significant shift in the company’s development strategy.

According to a report from The Information, three anonymous sources claim that Sharma intends to cut funding for underperforming studios. The goal is to funnel those resources into the platform's heavy hitters: Fallout, The Elder Scrolls, and Halo. This move comes as Xbox faces pressure to address the decade-long gaps between major releases in its flagship franchises.

The Long Wait for Flagship Titles

The current state of Xbox’s marquee brands has become a point of frustration for the company. It has been 11 years since Fallout 4, 15 years since the release of Skyrim, and eight years since the announcement of The Elder Scrolls 6. Meanwhile, the next entry in the Halo series is confirmed to be a remake, and Halo: Infinite is already five years old.

Sharma’s plan aims to constrict these lengthy development cycles to get major titles into the hands of players faster. Additionally, the company reportedly plans to increase investment in Minecraft to bolster its core offerings. However, this strategy is not without its trade-offs.

A Risk-Averse Future for Xbox

Budgetary allocations for Xbox are not expected to change in 2027, meaning that the push to prioritize these massive franchises requires cutting resources elsewhere. This reallocation is expected to result in fewer double-A projects, signaling a more risk-averse approach from the publisher as it pivots toward proven moneymakers rather than maintaining a diverse library for Game Pass subscribers.

The potential for studio closures is already fueling speculation within the industry, with some pointing to Double Fine—the team behind Psychonauts and Brutel Legend—as a studio that could be at risk. While this pivot may be necessary to address the lack of flagship titles, it remains a long-term play; regardless of the increased funding, major games still require extensive time to develop.