Xbox Co-Founder Laments a Shifting Focus at Microsoft

February 24, 2026 - 10:52

Seamus Blackley, a key figure in the creation of the original Xbox, has voiced stark criticism regarding Microsoft's current trajectory for its gaming division. He suggests the iconic Xbox brand is being gradually phased out, or "sunsetted," as the company pivots its resources and attention toward the burgeoning field of artificial intelligence.

In a series of pointed comments, Blackley characterized Microsoft Gaming's new CEO, Matt Booty, as acting like "a palliative care doctor." This analogy implies Blackley believes Booty's role is not to revive or aggressively grow the Xbox platform, but rather to manage its perceived decline comfortably while the corporation's priorities shift elsewhere. The core of his argument centers on the belief that Microsoft's strategic future is now overwhelmingly centered on generative AI, with gaming taking a secondary position.

Blackley’s perspective highlights a growing concern among some industry observers and longtime fans. They worry that Microsoft’s significant investments in AI, including its massive partnership with OpenAI, may come at the expense of its gaming ecosystem. While Microsoft continues to release hardware like the Series X|S and maintains Game Pass, critics like Blackley sense a fundamental change in corporate emphasis, questioning the long-term commitment to the console brand he helped launch over two decades ago. The comments underscore a tense period of transition within the tech giant, as it balances its historic gaming interests with what it views as the next technological frontier.