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Xbox Faces Discontinuation as Microsoft Shifts to AI

3/5/2026

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Story summary
  • Xbox may be discontinued as Seamus Blackley, Xbox co-founder, states Microsoft is shifting toward artificial intelligence under Satya Nadella, CEO of Microsoft.
  • Blackley says Xbox is no longer a priority and will be phased out as Microsoft focuses on AI.
  • He criticizes Satya Nadella's leadership, noting Xbox's hardware sales decline with a 29% drop in Q1 2026.
  • He says Nadella must demonstrate confidence in AI's potential to revitalize gaming, despite Xbox challenges.