Management allegedly “upset” at the state of Xbox

Insider Jeff Grubb has claimed that Microsoft isn’t happy with the current state of the Xbox after its low first-party output and Tango Gameworks’ Hi-Fi Rush underperforming in terms of sales figures.

The details:

According to Grubb on the most recent episode of Game Mess Decides, Microsoft's gaming division is not in the best shape right now. Mike Minotti, co-host and managing editor of GamesBeat, asked Grubb if management is "happy" with the current state of Xbox, to which Grubb replied, "I can tell you, they are not. They're upset. We're just trying to diagnose it a little bit. You know, they didn't release a first-party game last year, and if that doesn't affect you if you always have something to play again, that's awesome, but a lot of people do regret getting their Xbox."
Many have criticized Xbox's first-party output in recent years, with its few releases plagued by delays or poor decisions such as Halo Infinite's live service design or Redfall's unusual decision to release without a 60 FPS mode, causing players to lose interest or skip games entirely. The company has also made acquisitions to broaden its reach, purchasing Bethesda in 2021, giving it direct access to The Elder Scrolls and Fallout, two of the most popular Western RPG franchises, as well as being able to offer the developer's next game, Starfield, on its Game Pass subscription service, though it has been pointed out that Starfield had already begun development before the acquisition, demonstrating that overall output from the gaming giant has been slow.
Tango Gameworks' recently released title Hi-Fi Rush reportedly "didn't make the money it needed to make" despite positive reviews and a reasonable level of hype, which contributed to the company's ongoing internal issues. There are many possible explanations for its low sales figures, with some blaming the decision to make the game a surprise release, launching immediately after its reveal trailer, while others believe its more unique style may have hampered its reach. Most, however, believe that a day-one release of Game Pass is to blame, as many of those who played the game did so through the service, either as existing subscribers or by taking advantage of the service's $1 month-long trial, which is likely to have cannibalized traditional sales.

More Microsoft/Xbox news:

Ubisoft+, the company's subscription service, is now available on Xbox platforms. The service costs $17.99 per month since Xbox players can only access the "multi-access" plan, which gives them access to 65 games on Xbox and Amazon Luna, as well as over 100 on PC.
Redfall, Arkane Austin's new vampire shooter, will only run at 30 FPS at launch, with a 60 FPS "performance mode" coming in a future update. The decision has sparked outrage, with many refusing to play the game at the capped frame rate, joining those who dropped out after the announcement that the game would be always-online.
Frank O'Connor and Joseph Staten, both Halo franchise veterans, have left Microsoft. Staten has since joined Netflix Games, while O'Connor's next move is unknown.