Xbox CEO Asha Sharma told staff in a memo obtained by The Verge that the company will return to player and revenue growth by the end of fiscal year 2027, following a massive reset that included thousands of layoffs and the spin-off of four studios. Sharma stated that profits will improve back in line with industry averages, with every function and studio owning part of that outcome.
Xbox FY2027 Priorities and Strategic Four C’s
To hit the fiscal year 2027 target, Sharma outlined four primary focus areas for the division. According to the memo obtained by The Verge, these priorities are Core, Content, Creation, and Connection. The Core priority involves strengthening the platform, led by console. Content focuses on growing great games into global franchises. Creation centers on making Minecraft the world’s creator platform, while Connection aims to extend the worlds that fans love.
Three-Stage Roadmap to Long-Term Growth
Xbox will measure its recovery through a three-stage roadmap shared by Sharma. The first stage requires returning to growth by the end of fiscal year 2027. The second stage spans fiscal years 2028 and 2029, during which the Four C’s and the roadmap must produce meaningful player value and revenue acceleration. The third stage targets fiscal year 2030, with an ambition to reach the halfway point of a long-term daily-player goal, supported by sustained double-digit growth in players and engagement and industry-leading margins.
Scale of the Platform and Current Metrics
Sharma provided figures detailing the current reach of the Xbox ecosystem. According to the internal memo, Xbox brings together more than 100 million people every day, more than 500 million each month, and nearly one billion each year. Sharma noted that the console generates the majority of Xbox revenue, remains the foundation of the fandom, and serves as the flagship experience. Meanwhile, the Xbox OS, Game Pass, Windows, and streaming services act as platforms for new players and developers.
Did You Know? Xbox has three unnamed franchises that currently generate more than $1 billion annually, according to disclosures in the leadership memo.
Studio Restructuring and Franchise Expansion
The company is shifting its studio system away from a decentralized model. According to Sharma, the new structure focuses more tightly on the strongest franchises and biggest new ideas, a shift already visible in recent efforts like the Fallout push. Xbox plans to build long-term plans for its biggest franchises across film, television, consumer products, sponsorship, and live experiences, alongside new global partnerships including in China. Furthermore, Xbox intends to lean on Candy Crush maker King and Microsoft Causal Games to grow its share in the casual gaming market, alongside investing in Minecraft more than ever before.
Frequently Asked Questions
When does Xbox expect to return to growth?
According to a memo from CEO Asha Sharma, Xbox aims to return to player and revenue growth by the end of fiscal year 2027.
What are the four strategic priorities for Xbox?
The four priorities are Core (platform and console), Content (growing games into global franchises), Creation (making Minecraft a creator platform), and Connection (extending fan-favorite worlds).
What is Xbox’s daily active user reach?
Sharma stated that Xbox brings together more than 100 million people every day.
What are your thoughts on the upcoming Xbox console exclusives and strategic reset? Join the conversation by leaving a comment below, explore our latest gaming industry reports, and subscribe to our newsletter for updates.