Xbox CEO Asha Sharma has outlined a strategic plan focused on ambitious growth and profitability following a period of significant layoffs and reported revenue declines within Microsoft's gaming division. In a recent internal memo, Sharma detailed four core priorities aimed at revitalizing Xbox over the next fiscal year, with a long-term vision to achieve substantial increases in daily active users.
The company is currently at 100 million daily active users, but aims to be "halfway to our long-term daily-player goal" by 2030. This ambitious target implies sustained double-digit growth in players and engagement annually, coupled with industry-leading profit margins. This goal is part of a larger aspiration to make Xbox "one of the few companies that entertains more than a billion people each day."
To achieve these objectives, Sharma's plan is structured around four key priorities, each beginning with the letter 'C':
CORE: Strengthen our platform, led by console. CONTENT: Grow great games into global franchises. CREATION: Make Minecraft the world’s creator platform. CONNECTION: Extend the worlds that fans love.
These priorities are intended to guide Xbox toward businesses that offer significant player value and accelerate revenue. The strategy acknowledges the console as a "flagship experience" but emphasizes expanding reach across PC, cloud gaming, and other platforms to attract new players. Microsoft's recent earnings report indicated double-digit declines in revenue for both hardware and games and services, with total annual revenue down by $1.7 billion, underscoring the urgency of this strategic shift.
Looking beyond gaming content, Xbox plans to monetize major franchises such as Fallout across various media, including film, television, consumer products, live experiences, and international partnerships, including in China. Significant investment will also continue for popular titles like Candy Crush and Minecraft. While details on "biggest new ideas" remain under wraps, the focus extends to developing and expanding the company's intellectual property into multifaceted global entertainment properties.