Xbox CEO Emphasizes That a Strong Console Alone Isn’t Enough for Success

The recent wave of layoffs at Xbox has sparked plenty of discussion about the future of Microsoft’s gaming division, including insights from its leadership. One thing is becoming increasingly evident: while the company is focusing on its major blockbuster franchises, Microsoft’s aspirations extend far beyond just maintaining a robust Xbox console ecosystem. “I think our core has to be healthy, and that will be necessary but not sufficient,” stated Xbox CEO Asha Sharma in a recent interview.

Sharma expressed concerns about Xbox’s performance over the past decade. “To grow, we made a bunch of bets … and in doing so, we didn’t focus enough on our core business,” she noted. “The primary indicator of your strategy is where you allocate your resources, and we simply spread ourselves too thin.” This could be a nod to the extensive network of game studios acquired by her predecessor, Phil Spencer, with five now being spun off and several others facing significant cuts amid the 3,200 layoffs occurring across Microsoft’s gaming sector this fiscal year.

While Sharma has offered some new console exclusives to please dedicated fans, such as Gears of War: E-Day, she also believes that major titles like Minecraft and other key franchises have not been fully leveraged. A source indicated that the immensely popular crafting game has been financially supporting many of the Xbox studios, even as it struggles to keep pace with competitors like Roblox.

“I want Xbox to be one of the few companies that entertains over a billion people each day and provides everyone the chance to create and connect,” Sharma shared this week when announcing the latest layoffs (which have occurred annually since the Activision Blizzard deal was finalized). “I know we can achieve this goal. Xbox boasts some of the most cherished franchises in entertainment history, talented studios worldwide, and we will return to growth in 2027.”

This ambitious vision could position Xbox as a platform that surpasses competitors like Steam and PlayStation, but achieving it—if it’s not just a pipe dream—will require a significant expansion beyond consoles. It would necessitate securing the most popular mobile games globally and establishing a much larger footprint on PC. Whether this represents a bold new strategy or simply more of the same will ultimately depend on its execution.