Xbox CEO Asha Sharma has stated that while a strong console business is vital, it is not enough on its own for Microsoft's gaming division to achieve its growth objectives. In a recent interview with Fortune, Sharma emphasized that the company's core must be healthy, but this alone is insufficient for expansion.
Sharma acknowledged that Xbox's strategy over the past decade involved making numerous bets that led to a diffusion of focus away from the core business. She indicated that the allocation of resources is the primary indicator of a strategy's success, and Xbox spread itself too thin. This comes as Microsoft's gaming division undergoes significant restructuring, including the spin-off of five acquired studios and substantial layoffs impacting thousands of employees.
Despite a recent focus on console exclusives like Gears of War: E-Day, Sharma reportedly believes that tentpole franchises such as Minecraft have been underutilized. Sources suggest that Minecraft has effectively subsidized many other Xbox studios, even as the game itself has faced competition from platforms like Roblox.
Sharma articulated her ambition for Xbox to become a company that entertains more than a billion people daily, offering them opportunities to create and connect. She expressed confidence in achieving this goal, citing Xbox's well-loved franchises and talented studios, and projected a return to growth by 2027. This ambitious target would position Xbox as a platform significantly larger than rivals like Steam and PlayStation, necessitating a dominant presence in mobile gaming and a vastly expanded footprint on PC.