Asha Sharma, who took over as Xbox CEO in February, is implementing a strategy to enhance the gaming unit's margins and profitability, which currently lag behind competitors like Sony and Nintendo. In a memo to staff, she emphasized the need to learn from past successes and failures while focusing on creating appealing content for players.
Recent changes include appointing new leaders, reducing Game Pass subscription prices, and laying off staff, all aimed at revitalizing the brand. Despite a 10% revenue decline in the latest quarter, Microsoft stock surged nearly 16% after the parent company reported strong earnings in other sectors.
Sharma's plans include increasing exclusive titles for Xbox, expanding into casual gaming through Activision Blizzard's King, and investing heavily in franchises like Minecraft. The goal is to achieve a 3% internal margin by next year and to reach sustained double-digit growth in players and engagement by fiscal year 2030