Xbox aims to return to player and revenue growth by the end of fiscal year 2027, Chief Executive Asha Sharma told employees in an internal memo outlining a three-stage plan to reverse the brand's fortunes. The division lost 7% of its revenue in fiscal year 2026, roughly $1.7 billion, driven by a 29% drop in hardware sales and a 5% decline in games and services.
Sharma set four priorities for the coming year: strengthening the console platform, turning top titles into global franchises, developing Minecraft as a creation platform, and expanding fan-favorite narrative universes. Minecraft will receive greater investment than ever before, while King and Microsoft Casual Games will be leveraged to grow the casual gaming segment.
The long-term ambition is to entertain more than one billion people daily. Xbox currently reports over 100 million daily users and nearly one billion annually. Three unnamed franchises already generate more than $1 billion in annual revenue, Sharma said, as the company shifts away from a decentralized model to concentrate resources on its most promising properties.