Xbox CEO Asha Sharma announces business reset amid hardware cost crisis and new console models

Xbox chief executive Asha Sharma, who succeeded Phil Spencer in February, has outlined a 100‑day "reset" for the division. In internal memos she highlighted that despite more than $20 billion invested over five years, Xbox ended the fiscal year with a profit margin of about 3 % and revenue down by roughly $500 million. The reset includes lowering Game Pass prices, expanding platform updates, and reviving exclusive titles such as Gears of War: E‑Day.

Sharma warned that the gaming hardware sector faces a severe component cost crisis: storage component prices have doubled since her arrival and are expected to rise five‑fold for the upcoming Project Helix console. This has led to production shortfalls and pushes the company to explore radically different business models, including cloud‑based, lower‑cost consoles and new distribution partnerships.

The plan also foresees major layoffs and cuts to marketing budgets, as reported by Bloomberg, and a continued focus on preserving flagship franchises like Halo while seeking additional exclusive content. The overarching goal is to restore growth, improve margins, and adapt Xbox’s hardware strategy to a market where mass audiences cannot afford multi‑thousand‑dollar consoles.