Xbox CEO Asha Sharma Outlines Ambitious Growth Plan in Memo to Staff

Xbox boss Asha Sharma has told staff that by 2030, Microsoft’s gaming business should hit the halfway point of its ambitious target of reaching more than a billion people each day.

CNBC reported that Sharma’s memo, which followed hot on the heels of difficult financial results for Microsoft’s gaming business, set out plans for revenue growth in the 2028 and 2029 fiscal years.

Earlier this month, Sharma cut 1,600 Xbox staff, with another 1,600 to go during the rest of this financial year. Four studios are out the door, with another on its way. The restructure will see a doubling down on big Xbox-owned video game franchises, such as Fallout, a significant investment in Minecraft, and a push for a more casual audience via the likes of Candy Crush.

Announcing the restructure, Sharma said she wanted Xbox to be “one of the few companies that entertains more than a billion people each day and gives everyone the opportunity to create and connect.” It was a somewhat improbable target that drew a healthy dose of scepticism from some quarters, but Sharma doubled down:

“I know we can achieve this goal,” she insisted. “Xbox has many of the most beloved franchises in entertainment history, talented studios around the world, and we will return to growth in 2027.”

In this latest memo, Sharma went into more detail on this growth plan. In it, she said that her goal is for Xbox to be halfway towards that billion figure by 2030 — so, in four years time, Xbox will have half a billion people engaging with its gaming business each day.

“By FY30, our ambition is to be halfway to our long-term daily-player goal with sustained double-digit growth in players and engagement and industry leading margins,” she said.

To put the challenge into perspective, Sharma said Xbox currently has “more than 100 million people every day.” Xbox revenue declined 10% for the quarter ending June 30. When comparing the entire 2026 fiscal year to the 2025 fiscal year, Xbox revenue decreased by 7%, or around $1.7 billion. Xbox ended the financial year with a 3% internal margin (Sony operates at an around 10% margin, Nintendo 16%).

How will Xbox achieve this accelerated growth? “We will build long-term plans for our biggest franchises across film, television, consumer products, sponsorship, live experiences, and form new partnerships globally, including China,” Sharma wrote.

Xbox has three franchises that generate more than $1 billion annually — they’re thought to be Call of Duty, Minecraft, and Candy Crush. To reach its ambitious growth targets, Microsoft will need all three to grow further, while also growing other franchises, such as Fallout and Halo.

Then there’s the question of the next-generation console, Project Helix. There is talk of it potentially costing north of $1,000 as the RAMpocalypse continues to bite. Will console sales collapse as they become even more premium gaming devices than they already are?

Reacting to Xbox’s tough financials in a tweet, Sharma said the company’s recovery will take time, but it expects results in the next 12 months.

“In FY26, over 200 million new players came to Xbox and our games, but our business did not grow with our audience,” Sharma said. “We need to close that gap by investing in what players value. That will take time, but we expect to return to growth by the end of FY27.”

Microsoft boss Satya Nadella also touched on Xbox in a conference call with investors, saying: “When it comes to Xbox, we are making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long term growth.

“We have the best IP in the industry, and talented studios around the world, and believe we can bring these strengths together and expect to return the business to growth in fiscal 2027.”