Xbox Reports Return to Growth Amid Restructuring
- Xbox CEO Asha Sharma reports a return to growth following extensive restructuring and over 1,800 job losses.
- Recent games such as Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft: Forever have contributed positively.
- Sharma also outlines future plans for Project Helix, a next-generation console.
According to reports, Xbox CEO Asha Sharma has stated that the company is “starting to return to growth” following a comprehensive restructuring of the gaming division that has led to more than 1,800 job losses. During an Xbox ‘town hall’ meeting, Sharma emphasized that the company is making “the right decisions to reinvest in the business.” She remarked that after reaching an all-time low, growth has improved to levels more than two to three times what they were and expects this trend to continue.
Sharma highlighted the successful launches of new titles, specifically naming Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft: Forever, all of which have reportedly had “strong” starts and contributed to this recovery.
Earlier this year, Xbox experienced a decline in player activity, including hours played, player numbers, and revenue. However, Sharma noted that the situation has improved, with a stabilization in the hours played by users.
Regarding Game Pass, Sharma indicated that prior strategies had caused the service’s profitability to “sink into freefall.” This likely refers to the decision to include Call of Duty games in Game Pass on their release day, which eventually necessitated a price increase for the service in 2025, followed by a reduction in 2026, sacrificing the inclusion of day-one Call of Duty titles.
Sharma also posed the question, “Why do we exist?” and answered, “We exist to be where the world plays,” emphasizing the goal of reaching a billion daily active users and reiterating their commitment to fans and franchises.
During the same town hall meeting, Sharma discussed broader initiatives, including Project Helix, the upcoming next-generation console. She reaffirmed that Helix will be “a family of devices” and teased potential developments in the handheld gaming market, acknowledging the desire for portable gaming solutions.
This year has been challenging for Xbox since Asha Sharma assumed the role of CEO in February. Shortly after her appointment, she revealed a significant restructuring plan for the gaming division, which includes extensive layoffs, studio divestitures, and a renewed focus on major franchises alongside new business models for Xbox hardware and services. This restructuring process is expected to conclude by next summer.
News Courtesy of Eurogamer
