Xbox boss Asha Sharma acknowledges ‘work to do’ to reverse financial struggles

Xbox chief Asha Sharma accepts that the company has “work to do” to reverse Microsoft’s dwindling gaming revenues.

Asha Sharma has admitted there is “work to do” to turn around Xbox’s financial performance, as the company looks to steady the business following a challenging period.

Sharma, who took over from Phil Spencer earlier this year, made the comments after Microsoft reported declining gaming revenues in its latest quarterly results.

For the three months ending March 31, 2026, overall gaming revenue fell by seven per cent, while Xbox content and services revenue dropped five per cent. Hardware sales saw the steepest decline, with Xbox console revenue down 33 per cent, continuing a downward trend for Xbox Series X and Series S.

Sharma posted on X: “While we have made progress expanding the business and our margins, player and revenue growth has not yet met our ambition. We know we have work to do to earn every player today and into the future.”

The new leadership team has already begun making changes, including cutting Xbox Game Pass prices, reassessing exclusivity strategies, and shifting focus back to core console players. Sharma has also moved to scrap the “This is an Xbox” campaign as part of a broader repositioning of the brand.

Despite the financial downturn, there are signs of engagement growth. Microsoft reported record monthly active users across Xbox platforms, along with increased cloud gaming usage, suggesting continued interest in its ecosystem.

During the company’s earnings call, CEO Satya Nadella said Microsoft is doing the “foundational work required to win back fans”, adding that the company is prioritising quality and core user experience.

Internally, Xbox leadership has acknowledged shortcomings, including slower feature updates, a weaker presence on PC, and fragmented user experiences across social and discovery features. The company is now aiming to improve platform tools for developers, expand into mobile and emerging markets, and strengthen its long-term lineup of games.

While Sharma’s impact on financial results will take time to materialise, her early strategy signals a reset for Xbox as it looks to rebuild momentum in an increasingly competitive gaming market.