- Founded
- 2001-01-01 in Redmond, Washington, USA
- Headquarters
- Redmond, Washington, USA
XBOX is a global video game brand owned by Microsoft and operated under the Microsoft Gaming division. Launched in November 2001 with the original Xbox console, it has grown into a multi-billion-dollar ecosystem spanning home consoles (Xbox Series X|S), PC gaming, cloud streaming via Xbox Cloud Gaming, subscription services through Xbox Game Pass, and an online multiplayer network. Microsoft reorganised its gaming assets under Microsoft Gaming in 2022, incorporating first-party studios including Xbox Game Studios, ZeniMax Media (Bethesda Softworks), and Activision Blizzard (Activision, Blizzard Entertainment, King). As of early 2026, XBOX reaches over 500 million monthly active users and is a top publisher across platforms. In February 2026, Asha Sharma was appointed CEO of Xbox, and in July 2026 she announced a major restructuring to improve profitability, streamline content portfolios, and reset the platform.
Detailed Review
History and Founding
XBOX began as an internal Microsoft project in 1999, driven by four DirectX engineers—Kevin Bachus, Seamus Blackley, Ted Hase, and Otto Berkes—who saw the PlayStation 2 as a threat to PC gaming. The first Xbox console launched in November 2001 with a unique x86 architecture and built-in Ethernet port, enabling the pioneering Xbox Live online service in 2002. The Xbox 360 (2005) sold 86 million units, cementing Microsoft as a major console player. The Xbox One (2013) introduced backward compatibility and integrated TV features.
Business Model and Subscription Growth
In 2017, Microsoft launched Xbox Game Pass, a subscription service offering a rotating library of games for a monthly fee, which became a core growth driver. Xbox Cloud Gaming (part of Game Pass Ultimate) streams games to mobile devices, PCs, and Samsung TVs. The brand’s first-party game portfolio expanded massively through acquisitions: ZeniMax Media ($7.5 billion in 2021) and Activision Blizzard ($68.7 billion in 2023).
Product Portfolio and Market Position
XBOX’s current-generation consoles are the high-performance Xbox Series X and lower-cost all-digital Xbox Series S, both released in 2020. The Xbox network (formerly Xbox Live) serves as the online multiplayer and digital distribution platform. First-party franchises include Halo, Forza, Gears of War, Minecraft, Call of Duty, World of Warcraft, and Candy Crush. The brand competes with Sony’s PlayStation and Nintendo’s Switch, holding a smaller but significant hardware install base while leading in subscription and cloud gaming.
Recent Restructuring and Leadership
In July 2026, CEO Asha Sharma announced the most significant restructure in XBOX history, cutting approximately 3,200 roles and spinning out studios like Compulsion Games, Double Fine, Ninja Theory, and Undead Labs to independent management. The goal is to achieve margins comparable to other platform and publishing businesses. Asha Sharma, previously COO at Instacart and VP at Meta, became EVP and CEO of Microsoft Gaming in February 2026. Matt Booty was appointed EVP and Chief Content Officer.
Key Products
XBO Exchange
A centralised cryptocurrency trading platform supporting over 70 coins, with spot trading, fiat on-ramps, and a web/mobile interface.
XBO Wallet
Non-custodial and custodial wallet solutions integrated with Fireblocks for secure storage and transfers of digital assets.
XBO API
REST and WebSocket APIs for institutional traders and payment services, enabling merchant acceptance of cryptocurrencies.
Xbox Series X|S
Current-generation home consoles: Series X offers high-performance 4K gaming, while Series S is a lower-cost all-digital option.
Xbox Game Pass
Subscription service providing a rotating library of downloadable games for console, PC, and cloud streaming.
Xbox Cloud Gaming
Cloud-based game streaming service (part of Game Pass Ultimate) enabling play on mobile, tablet, PC, and Samsung TVs.
Xbox Network
Online multiplayer and digital distribution platform including voice chat, achievements, and store (formerly Xbox Live).
Xbox Game Studios
First-party game publisher overseeing studios such as 343 Industries, Turn 10, Playground Games, Mojang, and others.
Activision Blizzard
Subsidiary publisher of Call of Duty, World of Warcraft, Diablo, Overwatch, and Candy Crush.
ZeniMax Media (Bethesda Softworks)
Subsidiary publisher of The Elder Scrolls, Fallout, Starfield, Doom, and Wolfenstein.
Minecraft
Sandbox game franchise owned by Microsoft through Mojang Studios, acquired in 2014.
Key Persons
Asha SharmaCEO (EVP & CEO, Microsoft Gaming / XBOX)