Xbox CEO Asha Sharma has laid out four business priorities with the explicit goal to return Xbox to player and revenue growth by the end of fiscal year 2027 in June 2027. In a memo sent to employees, Sharma stated that the company will bring profits back in line with industry averages, noting that every function and studio will own a part of that outcome.

Quick Facts

  • Target Date: Return to growth by the end of fiscal year 2027 (June 2027).
  • Core Pillars: Core, Content, Creation, and Connection.
  • Console Status: The Xbox console generates the majority of Xbox revenue, remains the foundation of fandom, and acts as the flagship experience.
  • Studio Strategy: Xbox studios are shifting from a decentralized model to a structure focused on strongest franchises and major new ideas.

The Four C's Strategy

Sharma outlined four specific pillars intended to steer the business through fiscal year 2027:

  • Core: Strengthen the 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.

Progress toward these objectives is divided into three stages. The first stage targets growth by June 2027, followed by a second stage in FY28 and FY29 where bets must transition into businesses producing meaningful player value and revenue acceleration. The third stage aims to scale what works, with an ambition by FY30 to be halfway toward long-term daily-player goals alongside sustained double-digit growth in players and engagement.

Franchise Expansion and Casual Gaming

Under the updated studio framework, Xbox and Bethesda have announced multiple Fallout titles. These include Fallout 5, a new entry developed by Fallout New Vegas creator Obsidian, and remasters of Fallout 3 and Fallout New Vegas.

Long-term plans are being built for major franchises to expand into film, television, consumer products, sponsorships, live experiences, and global partnerships, including in China. While Sharma revealed that three Xbox franchises already generate more than $1 billion annually, she did not specify which titles they are. Additionally, Xbox plans to grow its casual gaming share through work with Candy Crush developer King and Microsoft Casual Games, alongside increased investments in Minecraft.