Xbox CEO Asha Sharma has outlined a four-part plan intended to return Microsoft’s gaming business to strong growth and profitability after another 1,600 employees were laid off at the start of July 2026.
The memo sets an extraordinary long-term target: Xbox wants to reach 1 billion daily users. The platform currently reports 100 million, while the new plan aims to reach the halfway point within four years.
Details of the strategy were reported from The Verge after excerpts from the July 30 memo circulated among Xbox staff. The timing follows Microsoft’s latest earnings report, which showed double-digit revenue declines for both hardware and games and services. Total annual revenue fell by $1.7 billion.
Xbox’s four strategic priorities
For the next fiscal year, Sharma’s memo groups the company’s goals into four headings:
CORE: Strengthen the platform, led by console.
CONTENT: Turn great games into global franchises.
CREATION: Make Minecraft the world’s creator platform.
CONNECTION: Extend the worlds that fans love.
The matching initials may make the framework easy to remember, but the measures behind each category are still only partly defined. The roadmap for 2028 and 2029 calls for Xbox to move into businesses that generate meaningful player value and accelerate revenue.
By 2030, the stated objective is to be halfway to the long-term daily-player target, while maintaining double-digit growth in players and engagement alongside industry-leading margins. Reaching 500 million daily users from a current base of 100 million would require unprecedented expansion, approaching 50 percent annual growth.
Console remains central as Xbox expands
Sharma described Xbox as “one of the largest stadiums in the world”. She also called the console a “flagship experience”, but said the company would look for additional players through PC, cloud gaming and other platforms.
The strategy extends beyond game sales. Xbox plans to develop major properties such as Fallout across film, television, consumer products, sponsorships and live experiences. The memo also points to new global partnerships, including opportunities in China, as well as further investment in Candy Crush and Minecraft.
For Australian players following the wider arcade and gaming news landscape, the approach reflects an industry increasingly focused on platforms, entertainment brands and multiple ways to reach audiences.
New ideas remain under wraps
Sharma reportedly distinguished between Xbox’s established blockbuster franchises and its “biggest new ideas”. The memo did not identify those new projects, so their scope and timing remain unknown.
The growth plan follows Sharma’s earlier “reset” memo, which announced cuts affecting 3,200 Xbox employees over 12 months and included plans to close or spin off several studios. Whether the latest priorities can reverse the division’s financial decline will depend on how effectively Xbox turns its console, PC, cloud and entertainment businesses into sustained user and revenue growth.
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