An insider source reports Xbox staff are very puzzled by the company's console strategy.

It seems like both fans and employees are struggling to understand the direction that Microsoft is taking with the Xbox brand. Despite their initial efforts to revitalize the brand through studio acquisitions, it's become apparent that there's a lack of foresight within the company.

Sales for the Xbox Series X/S have been disappointing, and their attempt to boost numbers through Game Pass has not been successful. This has led to a shift towards multi-platform releases for exclusives and multiple rounds of layoffs, all in an effort to stimulate growth. However, a recent report suggests that even the employees at Xbox are unsure of the company's overall strategy.

According to a source who previously leaked the white digital-only Xbox Series X, many employees have claimed that the internal situation amid the layoffs has become "quite complex." They also stated that most employees are completely confused about Xbox's overall strategy, a sentiment that has been echoed by others in the past.

The recent layoffs at Xbox and Activision, which affected 650 staff, have also had an impact on the Call of Duty and Warzone Mobile teams. It's been reported that these teams were not meeting revenue expectations, leading to their inclusion in the layoffs.

It's clear that Xbox's main goal now is to increase the number of subscribers to Game Pass and console sales, both of which have been stagnant. This may explain their recent decision to raise the price of Game Pass and lock certain titles behind a more expensive subscription tier.

There's also speculation about Xbox's future plans, including a potential move into the handheld market and changes in how games are built and distributed. However, vague statements like these, coupled with the lack of high-profile exclusives, have only added to the confusion surrounding Xbox's strategy.

In terms of studio acquisitions, Microsoft currently owns 19 studios, but with the addition of Activision Blizzard, that number jumps to 29. This includes well-known studios such as Bethesda, Zenimax Online, and iD Software under the Bethesda umbrella, and Blizzard Entertainment, Infinity Ward, and Treyarch under the Activision Blizzard umbrella.

With so much uncertainty and change happening within Xbox, it's no wonder that fans and employees alike are struggling to understand the company's direction. But for now, all we can do is wait and see where Xbox goes from here.

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