Previous Game Pass Strategy Sent Xbox Into 'Freefall,' CEO Asha Sharma Reportedly Tells Staff
- Xbox CEO Asha Sharma announced in an internal memo that the company has "been able to reset Game Pass after an eight-month decline." Despite the strategy previously sending the balance sheet into "freefall," Sharma claimed the division is now returning to growth.
- Microsoft's gaming business is undergoing one of the most significant restructures in video game history, cutting nearly 2,000 staff. Chief content officer Matt Booty noted last month that Xbox remains only 75 percent through this painful reset.
- According to The Wall Street Journal, Game Pass subscriptions currently sit at about 30 million, falling short of the 77 million target. Sharma pointed to "strong starts" for Minecraft Dungeons 2 and Gears of War: E-Day as positive signs.
- To strengthen the platform, Sharma aims to expand initiatives like Play Anywhere while utilizing a family of devices for Gen 10, including the third-party Xbox Ally X by Asus. This multi-device strategy marks a shift in Xbox's approach.
- While Sharma has expressed ambitions to reach more than 1 billion people daily, that milestone remains distant. Long-term bets like rebooting Halo under Activision will require several years to determine if they can successfully drive the platform's future.
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"After an all-time low, we've started to return to growth" - Asha Sharma touts Xbox turnaround after drastic restructuring and many hundreds of layoffs
Xbox CEO Asha Sharma has reportedly told the company that Xbox has "started to return to growth" following wide-ranging restructuring that has reorganised the gaming division and resulted in more than 1,800 job losses.
Previous Game Pass Strategy Sent Xbox Into 'Freefall,' CEO Asha Sharma Reportedly Tells Staff
It's no secret that Xbox has had a rough time in 2026. With nearly 2,000 staff cut as part of sweeping layoffs and studio closures, Microsoft's gaming business is in the middle of one of the most significant restructures in video game history. But what led Xbox to this point? According to CEO Asha Sharma, Game Pass played a key role.
Xbox CEO says that the brutal reset in the gaming company is already "working" and that the previous Game Pass strategy she saw "free fall" in the company is behind.
After the drop in playing time and the shocking headbutts, the situation has stabilized - but they still have to fight hard for the trust of the fans.
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