Xbox Chief Asha Sharma Outlines Strategy to Improve Margins and Compete with Rivals by 2030
Asha Sharma, Microsoft’s new Xbox chief, has outlined a strategy aimed at improving the gaming division's profitability. In an internal memo viewed by CNBC, she set goals for Xbox to match rivals' margins in two years and surpass them by mid-2030. The plan includes investing heavily in Minecraft, expanding through global partnerships—particularly in China—and leveraging Activision Blizzard’s King unit to gain market share in casual gaming. Sharma has already taken steps such as lowering Game Pass subscription prices, laying off staff, and divesting four development studios since taking over from Phil Spencer. Despite a 10% quarterly revenue decline for Xbox—the worst performance since 2022—Microsoft’s stock rose nearly 16%, its strongest session in years. The gaming unit has struggled with console shipments lagging behind Sony's PlayStation and Nintendo's Switch, but Sharma emphasized exclusive titles to attract gamers. She also highlighted the importance of long-term planning for major franchises across media platforms.
Topics: Asha Sharma executive leadership gaming strategy margins Microsoft Xbox