Microsoft Gaming is changing its name back to Xbox, with consoles and Game Pass still at the center

Microsoft is dropping the Microsoft Gaming label and going back to Xbox as the name for its games business. The change was laid out in a staff memo from CEO Asha Sharma and CCO Matt Booty, who said the old name described the company structure, but not what it wants to be. According to the official post, Xbox’s new focus is daily active players, with hardware, content, services, and overall player experience all tied to that goal.

The memo also makes it clear that consoles are still a big part of the plan. Microsoft says future Xbox hardware will be built to be affordable, personal, and open. At the same time, the company says it’s rethinking some bigger policies, including how it handles exclusivity windows and AI, though it didn’t share specifics yet.

Beyond the name change, the memo points to a broader strategy shift. Xbox wants to keep pushing into China, other emerging markets, and mobile-first audiences, while continuing to lean on long-running games and major platform brands like Minecraft, The Elder Scrolls, and Sea of Thieves. It also says Game Pass will stay central, but with more attention on a sustainable business model and tighter cost control.

That comes just days after Xbox cut Game Pass prices and removed Call of Duty from the service’s day-one release lineup. Game Pass Ultimate dropped from $29.99 to $22.99 a month, while PC Game Pass went from $16.49 to $13.99. Even so, those prices are still above where they were before the big increase in October 2025.

The company’s hardware plans are still moving ahead too. Last month, Xbox announced its next-gen console, currently codenamed Project Helix, and said it’s being built with AMD. So while the branding is changing back, the bigger message here is that Xbox wants a clearer identity as it heads into its next hardware cycle.