Xbox CEO Asha Sharma has established strategic priorities aimed at returning the gaming division to revenue and player growth by the end of fiscal year 2027, according to a memo she shared with staff. Since assuming leadership in February, Sharma has implemented significant organizational changes including workforce reductions and the separation of four studios. She cited previous operational challenges including low accountability margins, rising hardware costs, and an overextended portfolio of development studios.
Sharma identified four core priorities for the upcoming fiscal year: strengthening the console platform, developing games into global franchises, positioning Minecraft as a major creator platform, and expanding fan-beloved gaming worlds. The roadmap divides progress into three stages, with the initial phase focused on returning to growth by the end of fiscal 2027. Subsequent stages aim to demonstrate revenue acceleration in fiscal years 2028 and 2029, followed by a scaling phase targeting fiscal year 2030 with sustained double-digit growth in players and engagement alongside industry-leading profit margins.
According to Sharma, Xbox currently reaches more than 100 million daily players, over 500 million monthly users, and nearly one billion annually. She emphasized that console gaming remains the foundation of Xbox’s revenue and brand identity, while acknowledging the importance of Game Pass, Windows, and streaming services in attracting new players and developers. The company plans to reorganize its studio structure away from a decentralized model toward one concentrated on flagship franchises and significant new projects.
Xbox intends to develop its major franchises across multiple entertainment mediums including film, television, merchandise, and live experiences, with expansion plans including partnerships in China. Three Xbox franchises currently generate more than one billion dollars annually, though specific titles were not identified. The company will also focus on casual gaming through partnerships with King, maker of Candy Crush, and plans substantially increased investment in Minecraft development.
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