Xbox CEO outlines four priorities to restart revenue growth

With the console market more competitive than ever, Xbox is signaling a fresh push to reverse recent revenue declines. In an internal memo shared with staff, CEO Asha Sharma laid out four priorities—aimed at returning both player growth and profits toward industry norms for the rest of the fiscal year and beyond.

What Sharma’s memo says will drive growth

According to a memo obtained by The Verge on July 30, Sharma’s plan centers on four “core pillars” designed to improve profitability and bring Xbox back to growth for players and revenue. The pillars are framed as the “Four C’s.”

The first pillar is to strengthen Xbox’s platform, with console leadership explicitly called out as the focus. Next, Xbox wants to grow standout games into global franchises—positioning content as a long-term engine rather than a series of isolated releases. The third pillar highlights creation, with Minecraft singled out as the world’s creator platform. Finally, the plan emphasizes connection: extending the worlds fans already love, rather than treating games as closed experiences.

Sharma’s memo also outlines how success will be assessed in stages. The first target is to return to growth by the end of fiscal year 2027, which concludes in June 2027. The second stage covers fiscal years 2028 and 2029, when Xbox is expected to use the Four C’s to deliver meaningful player value and revenue acceleration. The third stage runs through fiscal year 2030, aiming to “scale what works” so Xbox reaches a midpoint toward a longer-term daily-player goal, backed by sustained double-digit growth in players and engagement.

Leadership shake-up and layoffs set the backdrop

The memo arrives during a period of significant internal change at Xbox. Earlier this year, February saw Phil Spencer and Sarah Bond depart the company. Sharma was appointed as the new CEO after that leadership transition and brought in several new leaders, many from Microsoft’s AI organizations.

As is common during major restructuring, layoffs followed. In early July, Sharma announced that more than 3,000 Xbox employees would leave the company by the end of fiscal year 2027.

A response to financial results—and a gap to close

The memo was released not long after Microsoft’s latest financial earnings report revealed a notable decline in Xbox revenue versus the prior year. Following the earnings update, Sharma posted on Twitter that Xbox had welcomed over 200 million new players, but the business had not grown in step with that audience.

Her stated direction is to bridge that gap by investing in what players value, aligning spending and development priorities with engagement outcomes. Sharma reiterated an expectation to return to growth by the end of FY27, matching the first milestone in the internal memo’s staged measurement plan.

Key points

• Xbox CEO Asha Sharma’s internal memo defines four “Four C’s” priorities for growth.
• Milestones run from returning to growth by FY27 to scaling “what works” by FY30.
• Console-led platform strength and franchise-building are central themes alongside Minecraft creation and extended fan worlds.
• The strategy is positioned as a response to recent revenue decline despite strong player acquisition.

Growth timeline in Sharma’s “Four C’s” plan

Expert View

This memo reads like Xbox is trying to convert audience momentum into durable revenue—an issue highlighted by the mismatch between new player intake and declining revenue. By tying progress to a staged timeline through FY30, Xbox is effectively setting internal accountability around platform strength (console), long-horizon content (franchises), ecosystem creation (Minecraft), and retention via connected experiences. In the broader market, the competitive signal is clear: Xbox wants its biggest brands to act as engines for both engagement and monetization, not just standalone releases—something that could influence how rival platforms evaluate franchise strategy and creator-driven ecosystems over the next few fiscal cycles.