"We will not live on past successes or be trapped by past failures" – Xbox CEO outlines priorities to turn platform around in FY27

Asha Sharma, the head of Xbox, has detailed a strategic plan to revive the division following a $1.7 billion revenue drop in 2023. In a memo circulated by CNBC, Sharma emphasized a console-centric approach, backing global franchises, fostering Minecraft's growth as the world's creator platform, and enhancing beloved gaming worlds.

Asus Sharma's perspective was clear: "We will not live on past successes or be trapped by past failures," stating that the company will learn from both and focus on creating experiences players will cherish for years to come. The plan involves long-term strategies for key franchises, spanning film, television, consumer goods, sponsorships, live events, and international partnerships, including China.

Sharma also pledged to significantly increase investment in Minecraft, expanding its features and opportunities for creators to generate income. By fiscal year 2027, the goal is to achieve half of the long-term daily player target, with a focus on sustained growth and industry-leading margins. Despite over 200 million new players joining Xbox in fiscal year 2026, Sharma noted that the business did not keep pace with this surge in audience.

To address this, Sharma proposed leveraging what players value most, acknowledging that achieving this will require time but expects to see a return to growth by the end of 2027. In response to Microsoft's broader financial challenges, including a 10% drop in quarterly revenue and significant workforce reductions, Microsoft CEO Satya Nadella affirmed the company's commitment to making necessary adjustments across its content, platforms, and operations to reset the business for long-term growth.