The Xbox division was facing declines in playtime, player numbers and revenue before the new leadership took over, CEO Asha Sharma said during an internal meeting with employees. According to Sharma, performance had reached one of the lowest points in the company’s history, prompting the restructuring carried out by Microsoft in 2026.Sharma said the team first managed to stabilize playtime and then returned to growth. Current results, she said, are between two and three times higher than the lowest point on record. She also attributed some of the problems to the previous Game Pass strategy, which allegedly contributed to the rapid decline in financial performance.The new leadership plans to put the Xbox Series X|S consoles back at the center of the company’s plans. Sharma acknowledged that the console market is not growing as it once did, but said there is still room to expand Xbox’s presence. The priority, she said, is to better serve those already part of the ecosystem before pursuing new audiences.The strategy is built around four pillars: Core, Content, Creation and Connection. The initiatives include strengthening existing hardware, expanding content, making developers’ work easier and building closer ties with the community.The next generation, known internally as Xbox Helix, will be a family of devices rather than just a console. Sharma said there will be a main console, while Microsoft also intends to serve players on handheld devices. Some products may be developed in-house, while other categories could emerge through partnerships with third parties.Game Pass is also set to change. The CEO indicated that the service will become more flexible, allowing different players to choose more precisely the types of content they want to access. Microsoft also plans to simplify APIs and publishing processes for Xbox Series X|S, Xbox Helix and PC.The company did not specify when these changes will be implemented or which devices will be part of the Xbox Helix family.
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