In a recent internal memo to staff, Xbox CEO Asha Sharma detailed the four core pillars that will reportedly drive revenue growth for the gaming company throughout the rest of the fiscal year. These core pillars echo much of the same sentiments that the Xbox CEO has previously discussed many times since taking the position in February.
The last few months have seen some major changes hit Xbox. February saw Phil Spencer and Sarah Bond leave Xbox altogether, with the former having worked at the company since its very inception. Asha Sharma was then appointed as Xbox’s new CEO, and she brought with her a handful of new leaders, many of whom came from similar backgrounds working in Microsoft’s AI departments. As is often the case when major leadership changes occur, mass layoffs soon followed, with Sharma announcing at the start of July that over 3,000 Xbox employees would lose their jobs by the end of fiscal year 2027.
Xbox CEO Reveals Core Pillars That Will Drive Growth
- 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
On July 30, The Verge obtained a memo from Xbox CEO Asha Sharma intended for internal use within the gaming company. The focus of this memo is on four core pillars that Sharma believes will “improve profits back in line with industry averages” and “return Xbox to player and revenue growth.” Sharma calls these pillars the “Four C’s.”
Rearrange the covers into the correct US release order.
Rearrange the covers into the correct US release order.
Easy (5)Medium (7)Hard (10)
The success of these four priorities will be measured in three distinct stages, according to this recent memo. The first stage is for Xbox to return to growth by the end of fiscal year 2027, which concludes in June 2027. The second stage encompasses fiscal year 2028 and 2029, with Sharma stating that this period must see Xbox using its Four C’s to produce “meaningful player value and revenue acceleration.” The third and final stage is to “scale what works” so that by fiscal year 2030, Xbox is “halfway to [its] long-term daily-player goal with sustained double-digit growth in players and engagement.”
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While the daily-player goal is not stated here outright, Sharma has recently said that Xbox’s ultimate goal is to entertain more than one billion users every day. With this in mind, Sharma is hoping that by the end of fiscal year 2030, Xbox will be bringing in over 500 million users a day. For reference, in this memo, Sharma claims that Xbox is currently bringing in 100 million users every day, “more than 500 million each month,” and “nearly” one billion every year.
This internal memo was also released soon after Microsoft’s most recent financial earnings report, where it was revealed that Xbox’s revenue had declined significantly compared to the previous year. Following the report’s publishing, Sharma took to Twitter, where she shared that “over 200 million new players came to Xbox… but our business did not grow with our audience.” Sharma’s social media post said that Xbox needs to bridge that gap by “investing in what players value.” Sharma ended her statement with the line “we expect to return to growth by the end of FY27.”