'We Expect to Return to Growth' — Xbox CEO Remains Optimistic Despite Continued Revenue Loss Driven by Low Hardware and Content Sales
- Xbox reported a $1.7 billion revenue decline in FY26, driven by a 29% drop in hardware sales as console volumes fell sharply. The Form SEC filing confirms the company experienced notable revenue loss at fiscal year-end.
- Microsoft CFO Amy Hood reported that Xbox content and services revenue decreased 10% against a prior year that benefited from strong first-party performance. This decline reflects reduced software momentum compared to the previous period.
- Operating expenses increased 8% and 7% in constant currency, driven by investments and "impairment charges," Hood noted. Operating income fell 14% and 15% in constant currency, with margins declining to 21%.
- Xbox CEO Asha Sharma acknowledged the results, noting that over 200 million new players in FY26 failed to drive business growth. She expects the company to return to growth by FY27.
- Microsoft CEO Satya Nadella said the company is making necessary decisions across its content portfolio, platform, and operations to "reset" the business for long-term growth. Nadella believes Xbox can return to growth in Fiscal 2027.
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43 Articles
Xbox CEO Asha Sharma Lays Out Ambitious Strategy Following Layoffs | 📲 LatestLY
Xbox CEO Asha Sharma has outlined a multi-year growth strategy following sweeping layoffs and falling revenues. According to a Business Today report, the roadmap targets player and revenue recovery by 2027, focusing on core consoles, major franchises like Fallout, and scaling Minecraft into a top creator platform 📲 Xbox CEO Asha Sharma Lays Out Ambitious Strategy Following Layoffs.
Xbox CEO lays out priorities in memo after major ‘reset’
Asha Sharma. | Image: The Verge, Microsoft After a massive Xbox "reset" that laid off thousands of employees and spun off four studios, Xbox CEO Asha Sharma wants to get Xbox back to growth. In a memo obtained by The Verge, Sharma told staff by the end of fiscal year 2027 (which runs through next June), "we will return XBOX to player and revenue growth." Xbox will also "improve profits back in line with industry averages," Sharma said. "Every f…
Microsoft’s Gaming Reset Faces A Hard Reality In XBOX’s Latest Earnings
Despite a dismal financial earnings report released by Microsoft showing a steep decline in its gaming sector (XBOX) for Q4, Asha Sharma has a positive outlook for FY27. XBOX has found itself in the news once again. Microsoft’s 10-K SEC filing has been published, and it shows that the company that brought fans Halo has continued to experience steep revenue loss at the end of its Q4 2026 fiscal year. The filing shows the gaming division’s revenue…
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