Xbox Gear Store Temporarily Shut Down: Uncovering Reasons for Restructuring and Upcoming Strategies
Microsoft's gaming empire is undergoing a significant transformation, with rumours of consolidating its merchandising efforts for Xbox, Bethesda, and Blizzard stores.
The most noticeable change so far is the hiatus of the Xbox Design Lab and the Xbox Gear Store. The Xbox Design Lab, which allows users to customise their Xbox controllers, has been offline since last December due to Microsoft moving its payment processor. However, it recently reopened on August 6, 2025, resuming all previous regional availability and adding new customisation options.
On the other hand, the Xbox Gear Store has been offline for some time, and its future status is uncertain. There are speculations that Microsoft might be exploring consolidating its merchandising operations—including Xbox, Bethesda, and Blizzard stores—under a single management or company. This potential consolidation would aim to improve cost-effectiveness and consumer experience by unifying products from multiple franchises in one storefront.
Microsoft's broader gaming business is expanding through acquisitions like Activision Blizzard and building an ecosystem that increasingly includes content, services, and hardware. This strategy might imply an eventual streamlining of various merchandising platforms to leverage these assets better, but a clear, public roadmap for merchandise consolidation has not been detailed yet.
Meanwhile, Microsoft made some significant changes in its Xbox division last month, laying off hundreds of staffers. This move could potentially be more cost-effective and allow fans to see products from other franchises.
In the hardware department, Microsoft is planning multiple new controller models for next-gen. The new controllers are expected to come with a variety of new enhancements and features, including better toggles for swapping between devices, Wi-Fi direct to reduce cloud latency, in addition to Bluetooth and Xbox Wireless signals.
However, not all news is positive. Microsoft cancelled Perfect Dark, a highly anticipated game from the Xbox division. The fate of other projects like Contraband remains unknown.
The Forza Motorsport social channels have gone dark, adding to the speculation surrounding Microsoft's plans for its gaming division. Despite the uncertainty, one thing is clear: Microsoft is committed to shaping the future of gaming, and its merchandising consolidation efforts are a significant part of that vision.
[1] VentureBeat (2022). Microsoft's gaming business is expanding with Activision Blizzard, but its merchandising efforts are in flux
[2] Windows Central (2025). Xbox Design Lab is back online with new customization options
[3] Windows Central (2025). Xbox Design Lab is back online: Here's what's new
[4] GamesIndustry.biz (2022). Microsoft's gaming business is expanding with Activision Blizzard, but its merchandising efforts are in flux
- Microsoft is rumored to be exploring consolidating its merchandising operations for Xbox, Bethesda, and Blizzard stores, aiming to improve cost-effectiveness and consumer experience by unifying products from multiple franchises in one storefront.
- Despite the ongoing consolidation speculation, Microsoft has brought back the Xbox Design Lab, allowing users to customize their Xbox controllers once again, with new customization options available.
- With the acquisition of Activision Blizzard and a focus on building an ecosystem that encompasses content, services, and hardware, Microsoft appears to be moving towards streamlining various merchandising platforms to better leverage its assets.
- Recent changes in Microsoft's Xbox division, such as the lack of updates on certain projects like Contraband and the cancellation of Perfect Dark, have added to the uncertainty surrounding the tech giant's gaming plans and future gadget announcements.
