Microsoft's FY27 Q1 results show Xbox revenue declining 2% year-on-year to $5.379 billion, with hardware sales plummeting 14% despite CEO Asha Sharma's insistence that console demand exceeds available supply. The company attributes ongoing shortages to AI-driven component hoarding and points to an expanded refurbishment program as part of its strategy to get more consoles into players' hands ahead of Grand Theft Auto 6's November launch.
Xbox and Netflix could not agree on a seven-year exclusivity deal for game adaptations after Netflix's $500 million offer was countered at $800 million by Xbox CEO Asha Sharma. The deal collapsed amid Netflix executive shakeups including the firing of content chief Bela Bajaria, though both companies still plan to collaborate on individual projects like Gears of War, Minecraft, and Diablo adaptations.
Microsoft has launched Xbox Labs, a new initiative designed to bring Xbox and Xbox 360 games to web browsers using WebAssembly and WebGPU technology. The program formalizes years of research into browser-based streaming and aims to support CEO Asha Sharma's goal of reaching one billion daily players.
Microsoft has officially launched Xbox Labs, a new experimental division led by CTO Scott Van Vliet that will explore emerging game technologies and AI-accelerated development. The announcement comes just months after Xbox CEO Asha Sharma vowed the company would not flood its ecosystem with "soulless AI slop."
Xbox CEO Asha Sharma reportedly told staff in an internal memo that the Game Pass strategy sent the division's balance sheet into freefall, but claims the business is now returning to growth after cutting prices and removing Call of Duty as a day-one title. Microsoft laid off nearly 2,000 employees in 2026 amid the restructuring.
Xbox CEO Asha Sharma acknowledged a $1.7 billion revenue drop in Q4 FY26 but insisted the business will return to growth by the end of FY27. Over 200 million new players joined Xbox in the past year, yet hardware sales fell 29% and content revenue declined 5%. Microsoft leadership frames the downturn as a necessary reset for long-term stability.
Microsoft plans to make more of its top games Xbox console exclusives to incentivize purchases. Titles like The Elder Scrolls 6, potential Fallout remasters, and possibly the next Halo could skip PS5. This strategic shift, led by new Xbox boss Asha Sharma, aims to "reset" Xbox amid financial struggles and a third-place market position.
Xbox's latest marketing move for Call of Duty: Modern Warfare 4 includes ads loudly disclaiming "NOT ON XBOX GAME PASS THIS YEAR", highlighting the service's strategic shift. This change follows Xbox's decision to stop including Call of Duty games at launch on Game Pass due to reported sales losses. The move reflects Xbox's ongoing struggles with its gaming strategy under new CEO Asha Sharma.
As Xbox celebrates its 25th anniversary, new CEO Asha Sharma spearheads a transformative era, leveraging innovations like Project Helix, a revamped Game Pass, and ambitious Hollywood adaptations. Despite trailing PlayStation 5 and Nintendo Switch in hardware sales, Xbox refocuses on "play" as the next generation's top entertainment form. With key titles like Halo: Campaign Evolved and strategic expansions into film and TV, Xbox aims to ascend beyond gaming into a broader entertainment powerhouse.
Xbox CEO Asha Sharma discusses the industry's hardware cost crisis, suggesting innovative solutions are in the works. Sharma hints at "radically different business models" and possibly a more affordable console by the end of the year. This move could significantly impact the console's accessibility amid rising prices.
