Xbox boss says business hit 'all-time low' before return to growth
Xbox chief executive Asha Sharma told staff the business started the year falling in play time, players and revenue, then began to climb again after deep cuts.
The remarks came at an internal town hall held after mass layoffs and studio closures linked to what the company calls its reset. Details of the meeting were reported on 6 October 2026, based on a transcript that Windows Central said it had obtained and checked with trusted sources.
Sharma put it bluntly. “After an all time low, we’ve started to return to growth.” She added: “We’ve started to return to growth, more than 2 to 3 times what we were, and we expect that continue,” according to GameSpot.
Hours spent playing on Xbox have stabilised. Positive brand sentiment is up 30% over the past year, Sharma said.
She pointed to three recent releases as evidence. Gears of War: E-Day, Minecraft Dungeons 2 and World of Warcraft: Forever all had “strong” starts.
Console remains the centre. Sharma said Xbox needs to invest more in its consoles even though the overall console market is not growing. Strengthening the current Xbox Series X and S, the ninth generation of Xbox hardware, is key.
She cited three supports for those machines. Xbox Cloud Gaming, which streams games without a download, a disc-to-digital programme that converts physical discs into digital copies, and Xbox Play Anywhere, which lets a purchase work across console and PC, with growth in the last of the three.
The next hardware, described as “Gen-10” and codenamed Project Helix, will be a “family of devices” because “there is no one device that fits all.” Microsoft will build some Helix devices itself and work with partners on others. Sharma said it is important to have a “great console first,” with extra options for players who are “on the go.”
That expansion has a limit. Xbox does not have the right to grow beyond console unless it serves its most valuable players the right way, Sharma said. She described the wider goal as being where the world plays, with success measured at a billion daily active people.
For players, this means two tracks. A stronger push behind the box under the television, alongside smaller ways to play elsewhere.
Subscription plans are part of the reset. Sharma said the previous Xbox Game Pass strategy, the monthly subscription that offers a library of games for a flat fee, sent Xbox into freefall declines on the balance sheet. She hinted Game Pass will become more flexible for more players in future, without giving a date or price.
She framed the plan around four Cs: core, content, creation and connection. Core means the console base. Content means games. Creation means tools for makers. Connection means online play and friends lists.
