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Xbox's Turnaround Bid

Xbox CEO Asha Sharma sets one-year deadline for player and revenue growth

Xbox CEO Asha Sharma has given the team a one-year window to reverse the company's decline, aiming for player and revenue growth by the end of fiscal year 2027.
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The essentials
  • Xbox will return to player and revenue growth by the end of fiscal year 2027.
  • Sharma outlined four key priorities: strengthening the platform, growing game franchises, building Minecraft's creator ecosystem, and extending fan-favorite worlds.

Sharma's timeline for recovery

After taking leadership of Xbox in February, Asha Sharma initiated a major transformation. According to an internal message accessed by The Verge, she established a clear schedule: by the conclusion of fiscal year 2027 — which concludes next June — Xbox needs to regain player and revenue expansion.

The executive also aims for the corporation to enhance profitability, aligning with typical industry levels. “Each department and studio will contribute to achieving this,” she noted, highlighting the shared responsibility for growth among various teams.

Four strategic priorities

The message specifies four key areas of focus for the upcoming fiscal year. First, fortifying the platform with emphasis on the Xbox console. Second, developing top games into worldwide phenomena. Third, positioning Minecraft as the foremost platform for creators. Fourth, expanding cherished worlds through fresh content, events, and partnerships.

Sharma described the strategy as a three-step approach. The initial phase is to resume growth by the end of fiscal year 2027. The final step is to scale successful initiatives by 2030, aiming to reach half of the company’s long-term daily-player target while maintaining consistent double-digit growth.

Studio system and game titles

Xbox is restructuring its studio approach to emphasize its most successful franchises and innovative new projects. This shift is evident in initiatives like the new Fallout campaign. Sharma mentioned the company intends to develop long-term plans for key franchises in areas such as film, television, consumer products, and live events.

Three Xbox franchises already generate over $1 billion yearly — although specific names were not provided — and the organization is expanding its casual gaming segment through King, Microsoft’s casual game arm, and by dedicating increased resources to Minecraft “more than ever before.”

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268364_Inside_Microsoft’s_big_Xbox_leadership_shakeup_CVirginia · Foto: theverge.com
“we will return XBOX to player and revenue growth”
The rollout

Sharma’s team has one year, until the end of fiscal year 2027, to deliver on the promise of returning Xbox to growth.

Based on reporting by The Verge, compiled by the Tradingbird newsroom. Published 31 Jul 2026, 03:57.
Topics: AI · Gaming