Following a major Xbox “reset” that resulted in thousands of job cuts and the spinoff of four studios, Xbox CEO Asha Sharma is setting a clear target: put the business back on a growth path. In an internal memo obtained by The Verge, Sharma told employees that by the end of fiscal year 2027, which runs through next June, “we will return XBOX to player and revenue growth.” She also said Xbox will work to “improve profits back in line with industry averages,” adding that “every function and studio will own part of that outcome.”
Sharma, who took over Xbox in February, has moved quickly to reshape the division as it tries to regain momentum. She has previously pointed to several internal pressures, including a low accountability margin, rising hardware component costs, an “over extended” studio lineup, and platform infrastructure she described as “not built for the battle ahead.” Alongside those broader changes, Xbox has made Gears of War: E-Day and Clockwork Revolution Xbox console exclusives and is expected to pursue more exclusivity moves. Sharma has also outlined a highly ambitious goal for Xbox to become “one of the few companies that entertains more than a billion people each day.”
In Thursday’s memo, Sharma identified four priorities that will guide Xbox through 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
Sharma said Xbox will track its turnaround across three “stages.” The first is returning to growth by the end of fiscal year 2027. The second focuses on turning current bets into measurable momentum: “In FY28 and FY29, our Four C’s and roadmap must move into businesses producing meaningful player value and revenue acceleration.” The final stage is to “scale what works.” By fiscal year 2030, Sharma said, “our ambition is to be halfway to our long-term daily-player goal with sustained double-digit growth in players and engagement and industry leading margins.”
Sharma shared some vague numbers about Xbox’s current playerbase. “XBOX is one of the largest stadiums in the world, bringing together more than 100 million people every day, more than 500 million each month, and nearly one billion each year,” she wrote. She also noted that console “generates the majority of XBOX revenue and remains the foundation of our fandom” and that it is still Xbox’s “flagship experience.” Xbox’s OS, Game Pass, Windows, and streaming “become our platform for new players and developers.”
The company is also shifting its studio system from a decentralized model to one that’s “more focused around our strongest franchises and biggest new ideas,” Sharma said — something that’s already become evident with changes like the big new Fallout push. Xbox will build “long-term plans” for its biggest franchises “across film, television, consumer products, sponsorship, live experiences, and form new partnerships globally, including China.” Three Xbox franchises “already generate more than $1 billion annually,” though Sharma doesn’t specify which those are.
To grow its share in casual games, Xbox plans to lean on Candy Crush-maker King as well as Microsoft Causal Games, Sharma said. And Xbox is planning to invest in Minecraft “more than ever before.”
