Xbox CEO lays out priorities in memo after major reset
Asha Sharma details a four-pillar strategy to return Xbox to player and revenue growth by fiscal year 2027 following massive structural changes.
Stock photo for illustration only, not from the actual event
- Asha Sharma aims to return Xbox to player and revenue growth by the end of fiscal year 2027.
- The strategy focuses on four main pillars: Core, Content, Creation, and Connection.
- Xbox reports over 100 million daily active users and 500 million monthly active users.
- Studio operations are shifting from a decentralized model to a focus on top franchises.
Following a massive Xbox reset that involved laying off thousands of employees and spinning off four studios, Xbox CEO Asha Sharma has shared a memo with staff outlining her priorities to guide the brand back to growth. Sharma told employees that by the end of fiscal year 2027, Xbox will return to both player and revenue growth, while also bringing profits back in line with industry averages.
Since stepping into the role in February, Sharma has implemented sweeping changes to tackle challenges such as a low accountability margin, rising hardware component costs, an overextended studio lineup, and outdated platform infrastructure. Alongside these structural adjustments, Xbox has committed to making titles like Gears of War: E-Day and Clockwork Revolution console exclusives, while pursuing an ambitious goal to entertain more than a billion people daily.
Stock photo for illustration only, not from the actual event
In her memo, Sharma established four key priorities for fiscal year 2027:
- CORE: Strengthen our platform, led by console
- CONTENT: Grow great games into global franchises
- CREATION: Make Minecraft the world's creator platform
- CONNECTION: Extend the worlds that fans love
Xbox will track its progress across three distinct stages, according to Sharma. The first stage focuses on achieving growth by the end of fiscal year 2027. The second stage, spanning fiscal year 2028 and 2029, requires the strategic roadmap to drive meaningful player value and revenue acceleration. The third stage targets fiscal year 2030, where the ambition is to reach the halfway point of the long-term daily player goal with sustained double-digit growth.
This strategic memo highlights Microsoft's pivot toward operational discipline and franchise concentration within its gaming division. By streamlining studio operations and focusing heavily on proven intellectual properties, Xbox is shifting away from broad experimentation to maximize profitability and long-term engagement.
Sharma also noted that the company is transitioning its studio system away from a decentralized model to concentrate more on its strongest franchises and major new ideas. Long-term plans are being developed across film, television, consumer products, and live experiences. Furthermore, Xbox plans to leverage Candy Crush maker King alongside Microsoft Casual Games to capture casual gaming share while investing in Minecraft more heavily than ever before.
Source: The Verge
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