Xbox CEO Asha Sharma outlines growth plan after major reset
Microsoft’s Xbox division, led by new CEO Asha Sharma, announced a strategic reset following the layoff of roughly 3,200 employees and the sale of four first‑party studios. In an internal memo, Sharma presented four priority pillars – CORE (strengthen the platform around consoles), CONTENT (grow leading games into global franchises), CREATION (make Minecraft the world’s creator platform) and CONNECTION (extend fan‑favourite worlds). The memo sets a timeline: return Xbox to player‑ and revenue‑growth by the end of fiscal year 2027, achieve double‑digit growth in players and engagement and industry‑leading margins by fiscal year 2030, and ultimately reach half of a long‑term daily‑player goal. Financial disclosures show a 7 % year‑on‑year revenue decline, with hardware revenue down 13 % in Q4 FY‑2026 and overall Xbox revenue falling by $1.7 billion. The division also targets a massive increase in active users – up to 5 billion daily users within four years and 500 million daily users by 2028‑2029. Three Xbox franchises already generate more than $1 billion each year.
Entities: Asha Sharma · Game Pass · Microsoft · Microsoft Corp · Minecraft · Satya Nadella · Xbox
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Xbox reported a 7% year‑on‑year decline in total revenue for fiscal year 2026. (Xbox financial results)
- [● 4 SOURCES] Xbox aims to restore player and revenue growth by the end of fiscal year 2027. (Internal memo from CEO Asha Sharma)
- [○ 1 SOURCE] Several Xbox franchises generate more than $1 billion annually. (CEO Asha Sharma’s statement)
- [○ 1 SOURCE] Xbox hardware revenue fell 13% in the fourth quarter of fiscal 2026. (Xbox Q4 results)
- [● 2 SOURCES] Xbox plans to lay off a total of about 3,200 employees over the next year. (CEO Asha Sharma’s memo)
- [● 3 SOURCES] Xbox targets 500 million daily active users within four years, ultimately pursuing one billion. (CEO Asha Sharma’s roadmap)
- [● 3 SOURCES] Xbox will focus on four strategic pillars: CORE, CONTENT, CREATION, CONNECTION. (Internal memo from CEO Asha Sharma)
- [○ 1 SOURCE] Xbox aims for 500 million daily active users by 2028‑2029. (source)
- [● 4 SOURCES] Three Xbox franchises generate more than $1 billion annually. (existing)
- [● 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). (source)
- [○ 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. (source)
- [● 6 SOURCES] Xbox aims to return to player and revenue growth by the end of fiscal year 2027. (source)