Shawn Layden, a former leader of Sony Interactive Entertainment America, has advised Asha Sharma, the new head of Microsoft's gaming division, to define a clear path for Xbox amid ongoing changes. Layden mentioned the "Dreamcast moment" for Xbox, referencing the 2001 decision by Sega to leave the console market after its Dreamcast failed commercially. This shift saw Sega focus on distributing games on rival consoles, such as Sony's PS2. Xbox has been undergoing major changes after struggling against Sony's consoles in two consecutive generations. Nearly 2,000 employees have lost their jobs, several long-standing studios have shut down or face closure, and many game projects have been canceled. The company is now focusing on a smaller number of major game series, such as The Elder Scrolls, Fallout, and Minecraft, while the development of Halo has been handed over to Activision, the company behind Call of Duty. The Helix project, which is expected to be the next Xbox console, is in development. Layden presented Sharma with two extreme choices: either Xbox directly competes with PlayStation by launching the Helix to challenge the future PlayStation 6, or it exits the console market entirely to focus on game publishing and software. He emphasized the need to make a decision—either to be a competitive platform against PlayStation or to accept the role as the world's largest game publisher. He pointed out that Microsoft, with its acquisitions of Activision, Blizzard, Bethesda, and others, is already the largest game publisher and could embrace this role. Microsoft has avoided directly addressing whether it might leave the console market, following weak sales of the Xbox Series X/S and the previous Xbox One. Publicly, Microsoft's CEO, Satya Nadella, and Sharma have reaffirmed their commitment to consoles, with Sharma highlighting their importance in the company's gaming strategy. However, she has also acknowledged the need to rethink the economic model of Xbox consoles and their profitability, especially due to the current RAM crisis, which is increasing hardware costs. In June, Sharma admitted that the surge in production costs for new and existing consoles would require "radically different economic models" for the next generation. She noted that rising prices of hardware and components, driven by global issues and the rise of artificial intelligence, have made it hard to imagine the general public spending "thousands of dollars" on a new console generation. Shuhei Yoshida, a former PlayStation executive, mentioned that Sony and Nintendo also benefit from extending the lifespan of their current consoles. With the PS5 and the upcoming Switch 2 already seeing price increases due to rising costs, many questions remain about the future of Xbox. What will the Helix console actually be like? How far will Xbox go in focusing on exclusive games? And most importantly: Will Xbox eventually leave the console market? If so, it would mark a major turning point in gaming history.