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Xbox CEO Asha Sharma unveils plan after 10% revenue drop
Xbox reported a 10% decline in revenue for the fourth quarter of fiscal year 2026, marking the steepest drop since 2022. In response, Microsoft announced a restructuring that includes laying off 1,600 employees immediately and a further 1,600 later, for a total of about 3,200 job cuts – the largest layoff wave in Xbox’s history. The division also spun off four first‑party studios: Compulsion Games, Double Fine Productions, Ninja Theory and Undead Labs.
Asha Sharma, the new head of Xbox, issued an internal memo outlining a four‑pillar strategy – Core, Content, Creation and Connection – aimed at strengthening the console platform, turning major games into global franchises, expanding Minecraft as a creator platform, and extending Xbox worlds into film, TV and other media. The memo sets three milestones: return to player and revenue growth by the end of fiscal year 2027, improve profit margins to industry‑average levels, and achieve double‑digit player growth to reach half of the long‑term daily‑active‑user target by fiscal year 2030. Sharma cites the current Xbox ecosystem as serving more than 100 million daily users, over 500 million monthly and nearly one billion annually.
Entities
Asha Sharma · Compulsion Games · Double Fine Productions · Game Pass · Microsoft · Microsoft Corp · Minecraft · Satya Nadella · Xbox
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] Xbox aims to restore player and revenue growth by the end of fiscal year 2027. icon-era.com · dailyguardian.ca · it.ign.com · www.ithome.com
- [● 6 SOURCES] Xbox CEO Asha Sharma outlined four strategic priorities: CORE, CONTENT, CREATION, CONNECTION. icon-era.com · dailyguardian.ca · www.ithome.com · time.news · www.uagna.it · +1 more
- [○ 1 SOURCE] Several Xbox franchises generate more than $1 billion annually. icon-era.com
- [● 2 SOURCES] Xbox hardware revenue fell 13% in the fourth quarter of fiscal 2026. it.ign.com · pixelcritics.com
- [○ 1 SOURCE] Xbox reported a 7% year‑on‑year decline in total revenue. it.ign.com
- [● 2 SOURCES] Xbox plans to lay off a total of about 3,200 employees over the next year. www.ithome.com · it.ign.com
- [● 3 SOURCES] Xbox targets 500 million daily active users within four years, ultimately pursuing one billion. icon-era.com · www.ithome.com · it.ign.com
- [○ 1 SOURCE] Xbox aims for 500 million daily active users by 2028‑2029. www.log.com.tr
- [● 4 SOURCES] Three Xbox franchises generate more than $1 billion annually. icon-era.com · dailyguardian.ca · playday.one · www.1001web.fr
- [● 8 SOURCES] Asha Sharma outlined four strategic priorities for Xbox: CORE (strengthen platform via console), CONTENT (grow franchises), CREATION (make Minecraft creator platform), CONNECTION (extend fan worlds). icon-era.com · www.gamespark.jp · dailyguardian.ca · www.1001web.fr · playday.one · +3 more
- [○ 1 SOURCE] Xbox revenue declined 7 % year‑on‑year, with hardware revenue falling 13 % in Q4 FY 2026 and overall revenue down $1.7 billion. it.ign.com
- [● 10 SOURCES] Xbox aims to return to player and revenue growth by the end of fiscal year 2027. icon-era.com · dailyguardian.ca · playday.one · it.ign.com · new-game-plus.fr · +5 more