Xbox CEO Asha Sharma has outlined an ambitious growth strategy for Microsoft's gaming division, setting a target to reach half of its ultimate goal of over a billion daily active users by 2030. This directive comes in the wake of recent financial challenges and significant workforce reductions.
In a memo to staff, Sharma stated that by the fiscal year 2030, Xbox aims to have half a billion people engaging with its gaming business daily. This represents sustained double-digit growth in players and engagement, alongside industry-leading margins. Currently, Xbox reports having over 100 million daily active users. This follows a period where Xbox revenue declined by 10% for the quarter ending June 30, and by 7% for the entire fiscal year 2026 compared to fiscal year 2025, a difference of approximately $1.7 billion. The division's internal margin stood at 3%, considerably lower than competitors like Sony and Nintendo.
Sharma acknowledged the company's recovery will require time, but expressed confidence in achieving results within the next 12 months and returning to growth by the end of fiscal year 2027. She noted that while over 200 million new players joined Xbox and its games in fiscal year 2026, the business did not grow in proportion to its expanding audience. The strategy to close this gap involves investing in what players value.
To achieve these accelerated growth targets, Xbox plans to leverage its major franchises across various media. This includes developing long-term plans for major intellectual properties like Fallout and Halo, alongside significant investments in Minecraft and the casual gaming market through titles such as Candy Crush. The company's top three revenue-generating franchises, each surpassing $1 billion annually, are believed to be Call of Duty, Minecraft, and Candy Crush. Expanding their reach and performance will be crucial for hitting the new growth milestones.
Microsoft CEO Satya Nadella echoed Sharma's sentiment during an investor call, stating that necessary decisions are being made across content, platform, and operations to reset the business for long-term growth. He emphasized the strength of Xbox's intellectual property and its talented studios as key assets that will be brought together to drive this recovery.
Sharma also addressed the upcoming next-generation console, codenamed Project Helix, which is rumored to carry a high price point potentially exceeding $1,000 due to ongoing supply chain issues. The impact of such premium pricing on console sales remains a significant consideration.
Despite recent layoffs, including the reduction of 1,600 staff with another 1,600 planned, and the closure of four studios, Xbox is doubling down on its core franchises and seeking new global partnerships, including in China, to broaden its audience and revenue streams.