Xbox CEO Asha Sharma has informed the company that the gaming division has "started to return to growth" after undergoing a significant restructuring that included over 1,800 job losses. According to a transcript of an internal Xbox town hall meeting seen by Windows Central, Sharma stated, "We're making the right decisions to reinvest in the business." She further elaborated, "After an all-time low, we've started to return to growth, more than two to three times what we were, and we expect that continue."
Sharma pointed to the recent releases of Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft: Forever as having strong launches that contributed to this turnaround. Earlier in the year, Xbox experienced a decline in player hours, numbers, and revenue, but Sharma noted that the decrease in hours played has since stabilized.
Regarding Xbox Game Pass, Sharma acknowledged that the previous strategy had led to the service's profitability "into freefall." This likely refers to decisions such as including Call of Duty titles on Game Pass from day one, which preceded price increases for the service in 2025 and subsequent price cuts in 2026 alongside the removal of day-one Call of Duty releases.
Sharma reiterated Xbox's mission, stating, "We exist to be where the world plays, we will know when we have a billion daily active people, and we have a right to win because we're now focused on our fans and franchises."
In relation to Project Helix, Xbox's next-generation console plans, Sharma reaffirmed that it will be a "family of devices." She also hinted at further ventures into the handheld market, suggesting a desire for gaming "on the go" beyond existing offerings like the ROG Ally X.
Since taking over as CEO in February, Sharma has overseen a turbulent period for Xbox. Her tenure began with the announcement of a major shake-up of the gaming division, involving widespread layoffs, studio divestitures, a renewed focus on key franchises, and the exploration of new business models for both Xbox hardware and services. The complete restructuring is anticipated to conclude by next summer.