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Microsoft is setting new targets for Xbox’s future. Following the company’s latest earnings report, Xbox CEO Asha Sharma has shared a memo with staff outlining plans to return Xbox to revenue and player growth over the next fiscal year.
In a memo obtained by The Verge, Sharma says Xbox is targeting a return to player and revenue growth by the end of FY27, with profits brought back in line with industry averages. She adds that every function and studio will play a role in achieving those goals. Since taking over in February, Sharma has already overseen major structural changes, including studio closures and a shift toward a more focused portfolio built around Xbox’s strongest franchises.
Some key areas of focus for Xbox over the next year will be strengthening the console platform, fostering growth for its biggest franchises and ramping up investment in Minecraft to transform it into a creator‑driven ecosystem, similar to the Roblox business model. Xbox will measure its progress in stages, beginning with a return to revenue and player growth in FY27 before pushing those initiatives into businesses that deliver meaningful value and accelerated revenue in FY28 and FY29. By 2030, Microsoft aims to be halfway toward its long‑term daily‑player target, with sustained double‑digit growth in engagement and margins that match the top end of the industry.
Under this new direction, Xbox is expected to prioritise its most successful IP. That includes faster and more active development on Gears of War, Halo and Forza, as well as newly acquired franchises like Call of Duty, World of Warcraft, The Elder Scrolls, Fallout and Doom. Minecraft will receive increased investment, and Xbox plans to lean on King and Microsoft Casual Games to grow its share in the mobile market. Even with this focus, Xbox faces an uphill battle, as the next generation of consoles is likely to be more expensive due to datacentre demand for components like RAM and SSDs, and chip fabricators such as TSMC are increasingly prioritising datacentre hardware over consumer devices.
KitGuru Says: Whether or not Xbox can achieve these targets remains to be seen. However, with a couple of successful Fallout projects, the return of Elder Scrolls and continued success from Activision Blizzard, they might just manage it.
