Xbox vows growth by FY2027 after revenue decline

Xbox leadership has committed to returning the gaming division to financial growth by the end of the next fiscal year, following a period of significant revenue decline and workforce reductions. The pledge comes as Microsoft reported its quarterly earnings, revealing a challenging period for its gaming business.

In an earnings call covering the period from April 1 to June 30, 2026, Microsoft CEO Satya Nadella stated the company is making necessary decisions across Xbox's content, platform, and operations to reset the business for long-term growth. He expressed confidence that the division, which possesses what he called the best intellectual property in the industry and talented studios worldwide, would return to growth in fiscal year 2027. Xbox CEO Asha Sharma echoed this timeline in a public statement on July 29, 2026, noting that while over 200 million new players came to Xbox in the last fiscal year, the business did not grow with its audience. She said closing that gap by investing in what players value will take time but affirmed the expectation of a return to growth by the end of the coming fiscal year.

The financial results that spurred these statements showed Xbox...