Microsoft May Pull Its Biggest Games Off PlayStation — Here's What Could Be At Stake

Xbox's new leadership is reportedly reviving console exclusives to give people a reason to buy the hardware, even as layoffs gut the studios that make the games.

Microsoft is reportedly preparing to pull back from its multiplatform strategy and start keeping more of its top games off PlayStation entirely, according to a Bloomberg report cited by IGN. The goal, according to that reporting: give people an actual reason to buy an Xbox console rather than just play Xbox games on whatever hardware they already own.

It's already happening in a small way. New Xbox boss Asha Sharma has made The Coalition's Gears of War: E-Day and inXile's Clockwork Revolution exclusive to Xbox Series X and S and PC, with no PS5 versions planned. Bloomberg's reporting suggests that's just the start. Big multiplayer titles will keep launching across platforms, PS5 included, but Microsoft intends to hold back more of its marquee single-player games for Xbox and PC only.

That marks a real reversal. For the past several years, Microsoft has leaned hard into putting its games everywhere, treating Xbox less as a walled garden and more as a brand that lives on whatever screen you've got, PlayStation included. Sharma's comments suggest that bet didn't pay off the way Microsoft hoped, and now the pendulum is swinging back.

Which games are actually on the table

The tricky part is figuring out what "best titles" actually means in practice, because several major games already have PS5 releases locked in. Playground Games' Forza Horizon 6 is confirmed for PlayStation, though it still lacks a release date there. Playground's fantasy RPG Fable is scheduled for February 23, 2027, across PS5, Xbox Series X and S, and PC. Mojang's Minecraft Dungeons 2 is due September 29, 2026, spanning PC, Nintendo Switch, Switch 2, PS5, and Xbox.

The real intrigue starts with the games that haven't been locked into multiplatform releases yet. Call of Duty almost certainly stays put on every platform, since it fits squarely into the "big multiplayer game" bucket Bloomberg says Microsoft will keep releasing broadly. But Bethesda's The Elder Scrolls 6 is a single-player game through and through, which puts it squarely in the category Microsoft is reportedly rethinking. Whether it skips PS5 entirely is now a genuine open question.

There's also the matter of Fallout. Microsoft is widely rumored to be working on a Fallout 3 remaster, and possibly a Fallout: New Vegas remaster too, building on the success of The Elder Scrolls 4: Oblivion Remastered. Those could just as easily become part of the exclusivity push.

And then there's Halo. This summer's Halo: Campaign Evolved is multiplatform, but that decision was made before Sharma took the reins and started her overhaul of the business. The next mainline Halo game hasn't been announced with a platform strategy yet, which leaves open the possibility Microsoft could bring the franchise back to its exclusive roots after years of console-agnostic releases.

Keeping something the size of The Elder Scrolls 6 off PlayStation would be a genuinely enormous decision. Sony's console has a massive install base, and walking away from it means walking away from a serious chunk of potential revenue, purely on the bet that scarcity will push more people toward Xbox hardware instead. Given that Microsoft describes Xbox's finances as being in crisis, it's a gamble with real money on both sides of the ledger.

The backdrop: layoffs, a "reset," and an admission of failure

This strategic shift isn't happening in isolation. It's arriving alongside a brutal round of cuts across Xbox. Microsoft laid off 1,600 people at Xbox this week, with another 1,600 expected to go over the next year. Five studios are being spun out of the Xbox business altogether. Doom developer id Software was hit hard, as was ZeniMax Online Studios, the team behind The Elder Scrolls Online. Obsidian also saw significant layoffs.

Sharma framed the exclusivity pivot as part of a broader admission that Microsoft's gaming strategy hasn't worked. That includes Game Pass, the subscription service Microsoft has poured resources into for years, its aggressive studio acquisitions, and its multiplatform push.

"While those businesses have created meaningful value, they did not grow at the pace we expected," Sharma said, according to IGN. "As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history. We must reset Xbox."

That's a striking thing for an Xbox executive to say out loud. It amounts to Microsoft conceding that spreading its games across every platform, while simultaneously expanding its stable of studios, didn't translate into the growth it expected. Xbox currently sits in third place in the console race, behind both PlayStation and Nintendo Switch, and Sharma has described the hardware situation as the worst crisis in the platform's history.

Whether pulling games off PlayStation actually reverses that is the open question. It's a strategy that trades near-term revenue from Sony's much larger install base for a longer-term bet that scarcity sells consoles. What happens with The Elder Scrolls 6, the next Halo, and any future Fallout remasters will be the clearest signal yet of how far Microsoft is willing to take that bet.