Xbox CEO Asha Sharma has issued an optimistic public response after Microsoft's latest fiscal filing revealed a sharp decline in the division's revenue. The Form 10-K SEC filing, covering the fourth quarter of Xbox's 2026 fiscal year, showed overall revenue down $1.7 billion, or 7%, with both content/services and hardware sales falling. The news comes shortly after Xbox's significant restructuring and mass layoffs earlier the same month, leaving players anxious about the platform's future.

Xbox content and services revenue fell 5% overall (with CFO Amy Hood citing a 10% decline against a strong prior-year comparison), while hardware revenue dropped 29% due to fewer console sales. Operating expenses rose 8%, and operating margins fell year-on-year to 21%. Despite this, Sharma noted that over 200 million new players joined Xbox in FY26 and pledged to invest in what players value, with both she and Microsoft CEO Satya Nadella predicting a return to growth by the end of fiscal year 2027.