Asha Sharma has outlined key priorities to help Xbox recover after it reported a $1.7 billion decline in revenue last year.
In a memo obtained by CNBC, the head of Xbox presented a roadmap emphasising a console-led strategy, support for global franchises, efforts to “make Minecraft the world’s creator platform,” and to extend “the worlds that fans love.”
“We will not live on past successes or be trapped by past failures,” wrote Sharma. “We will learn from both and put our energy into creating what players will love for decades.”
“We will build long-term plans for our biggest franchises across film, television, consumer products, sponsorship, live experiences, and form partnerships globally, including China.”
“We will invest in Minecraft more than ever before, strengthening the experiences players love while expanding the tools that help people create, share, and build audiences, and earn.”
“By FY30, 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.”
Following the publication of Microsoft’s financial results, Sharma noted that although over 200 million new players joined in FY26, the “business did not grow with our audience.”
“We need to close that gap by investing in what players value. That will take time, but we expect to return to growth by the end of 2027.”
In response to Xbox’s performance, which also reported a 10% decline in quarterly revenue, Microsoft CEO Satya Nadella stated the company “making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long-term growth.”
These actions included layoffs impacting 3,200 employees and the divestment of five studios announced earlier this month.
“We have the best IP in the industry, and talented studios around the world, and believe we can bring these strengths together and expect to return the business to growth in fiscal 2027.”