Xbox CEO Unveils Strategy for Growth and Competitive Edge by 2030

WHO:

CNBC - Asha Sharma is the CEO of Xbox at Microsoft.

CNBC - Matt Booty is the chief content officer of Xbox.

CNBC - Asha Sharma replaced Phil Spencer as Xbox CEO in February.

WHAT:

CNBC - Asha Sharma stated that Xbox reported a $1.7 billion decline in revenue last year.

VGChartz - Microsoft increased the price of Xbox consoles in most regions on May 1, 2025, and a second time in the US on October 3, 2025. The price is set to increase again on August 1.

GamesIndustry.biz - Asha Sharma noted that Xbox plans to invest in Minecraft "more than ever before," strengthening experiences for players and expanding tools for creation and sharing.

CNBC - Xbox total revenue for the fourth quarter of the 2026 fiscal year was $4.98 billion, down from $5.53 billion in the same period a year ago.

VGChartz - Xbox content & services revenue decreased 10 percent compared to the same quarter a year ago.

VGChartz - Xbox hardware revenue dropped 13 percent year-on-year.

VGChartz - For the fiscal year, total Xbox revenue decreased seven percent to $21.79 billion.

VGChartz - Microsoft CEO Satya Nadella stated, "When it comes to Xbox we are making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long term growth."

VGChartz - Asha Sharma stated, "In FY26, over 200 million new players came to Xbox and our games, but our business did not grow with our audience."

CNBC - Asha Sharma stated that Xbox aims to improve profits back in line with industry averages by mid-2030.

The Verge - Xbox plans to achieve sustained double-digit growth in players and engagement by fiscal year 2030.

The Verge - Xbox's current player base includes more than 100 million people every day, over 500 million each month, and nearly one billion each year.

The Verge - Three Xbox franchises already generate more than $1 billion annually.

CNBC - Asha Sharma laid out priorities for Xbox, including returning to player and revenue growth by the end of fiscal year 2027.

CNBC - Xbox reported a 10% quarterly revenue decline, marking the most sluggish performance since 2022.

CNBC - Asha Sharma stated, "We will not live on past successes or be trapped by past failures."

CNBC - Xbox aims to achieve a 3% internal margin, while Sony reported a 9.9% operating margin and Nintendo's approached 16%.

WHERE:

CNBC - Asha Sharma spoke at the Bloomberg Tech conference in San Francisco.

WHEN:

CNBC - The fiscal year for Xbox ends in June 2027.

CNBC - Asha Sharma's memo to staff was sent on a Thursday.

WHY:

CNBC - Asha Sharma emphasized the need to create what players will love for decades as a motivation for the new strategy.

CNBC - The strategy includes a focus on exclusive titles for the Xbox console to enhance competitiveness.

HOW:

GamesIndustry.biz - Microsoft announced layoffs impacting 3,200 employees and the divestment of five studios earlier this month.

VGChartz - Microsoft expects Xbox content & services to decline in the mid single digits percent (-4% to -6%) year-on-year for the quarter ending September 30, 2026.

The Verge - Xbox is shifting its studio system to be more focused around its strongest franchises and biggest new ideas.

CNBC - Asha Sharma has appointed new leaders, lowered Game Pass subscription prices, and announced layoffs and divestitures of four development studios.

CNBC - Xbox plans to build long-term plans for its biggest franchises across various media and form new partnerships globally, including in China.

(UPDATED July 31, 2026 19:25 UTC)

Xbox has reported a significant revenue decline of $1.7 billion over the past year, as stated by Asha Sharma. In response to these challenges, Microsoft has raised the price of Xbox consoles multiple times, with another increase set for August 1, following previous hikes on May 1 and October 3 of last year. Despite these setbacks, Sharma also mentioned that Xbox is committed to investing in Minecraft "more than ever before," aiming to enhance player experiences and expand creative tools.

(UPDATED July 31, 2026 16:31 UTC)

Xbox reported total revenue of $4.98 billion for the fourth quarter of the 2026 fiscal year, a decline from $5.53 billion during the same period last year, with both content and services revenue and hardware revenue also seeing significant drops. Microsoft CEO Satya Nadella emphasized the company's commitment to making necessary adjustments across their content portfolio and operations to reset the business for long-term growth, despite welcoming over 200 million new players to Xbox in FY26. Looking ahead, Microsoft anticipates a decline in Xbox content and services revenue of four to six percent year-on-year for the quarter ending September 30, 2026.

(UPDATED July 31, 2026 06:05 UTC)

Xbox is setting ambitious goals for the future, aiming to improve profits back in line with industry averages by mid-2030 while also targeting sustained double-digit growth in players and engagement by fiscal year 2030. Currently, Xbox boasts a player base of over 100 million daily users, more than 500 million each month, and nearly one billion annually, with three of its franchises already generating over $1 billion each year. To achieve these goals, Xbox is shifting its studio system to concentrate on its strongest franchises and the most promising new ideas.

(UPDATED July 31, 2026 01:34 UTC)

Asha Sharma, the new CEO of Xbox at Microsoft, recently outlined her priorities for the company during the Bloomberg Tech conference in San Francisco, emphasizing a return to player and revenue growth by the end of fiscal year 2027. With Xbox reporting a 10% quarterly revenue decline, Sharma stated, "We will not live on past successes or be trapped by past failures," as she focuses on creating exclusive titles and enhancing competitiveness in the gaming market. To achieve these goals, she has appointed new leaders, lowered Game Pass subscription prices, and announced layoffs and divestitures of four development studios, all while aiming for a 3% internal margin.