"We refuse to rest on previous achievements or be hindered by previous setbacks," Xbox CEO sets focus areas to revitalize the platform in FY27

Asha Sharma has set out a strategic plan aimed at revitalizing Xbox after the company experienced a $1.7 billion decrease in revenue last year. A memo obtained by CNBC reveals that the Xbox chief’s focus includes a strong emphasis on console strategies, supporting global franchises, making Minecraft the leading platform for creators, and expanding beloved game worlds.

Sharma communicated a need to draw lessons from past achievements and failures alike in pursuit of creating content that resonates with players for years to come. Plans are being developed for extending the reach of major franchises through film, television, merchandise, sponsorships, and partnerships internationally, including in China.

The company is poised to significantly increase its investment in Minecraft, enhancing the player experiences further and enriching the tools available for content creation, sharing, and monetization. By the fiscal year 2030, the aim is to have made substantial progress towards a long-term daily-player target while achieving sustained growth in both player numbers and engagement.

Despite the addition of over 200 million new players in fiscal year 2026, Sharma acknowledged that the business lagged behind the expanding audience. The company plans to bridge that gap by focusing on investments that reflect player priorities, with an outlook to return to growth by late 2027.

In the wake of Xbox's declining 10% quarterly revenue, Microsoft CEO Satya Nadella confirmed strategic decisions across the content portfolio, platform, and operations to reposition the business for future growth. This involves cutbacks affecting 3,200 employees and selling off five studios announced recently.

Nadella remarked on Microsoft's high-quality intellectual property and skilled studios globally, expressing confidence in leveraging these assets to drive business recovery by fiscal 2027.