# “Our business did not grow with our audience”: post-layoffs, Xbox execs are trying to sell a gaming division bounce back by summer 2027

- URL: https://talkfuse.com/story/our-business-did-not-grow-with-our-audience-post-layoffs-xbox-execs-are-trying-to-sell-a-gaming-division-bounce-back-by-summer-2027/
- Published: 2026-07-30T10:44:48+00:00
- Updated: 2026-07-30T11:08:24+00:00
- Original publisher: Rock Paper Shotgun
- Original article: https://www.rockpapershotgun.com/our-business-did-not-grow-with-our-audience-post-layoffs-xbox-execs-are-trying-to-sell-a-gaming-division-bounce-back-by-summer-2027
- Topics: Art, Business, Celebrity, Companies, Culture, Entertainment, Gaming

## Key points

- Xbox targets renewed growth by summer 2027 after layoffs.
- Revenue fell 7%, despite 200 million new players.
- Hardware sales dropped 29% year on year.

## Summary

Microsoft’s Xbox division says it aims to return to financial growth by the end of its 2027 financial year, following recent mass layoffs and a weaker set of results. Xbox CEO Asha Sharma said the business had gained more than 200 million new players in 2026 but had failed to turn that audience growth into higher revenue, while Satya Nadella described restructuring decisions as necessary for long-term growth.

Xbox revenue fell by $1.7 billion, or 7%, year on year in Microsoft’s April-to-June 2026 quarter. Content and services revenue declined 5%, while hardware revenue dropped 29%, reflecting weak console sales; the article questions whether reduced staffing, pressure on hardware costs and ongoing cuts leave much scope for a rapid recovery.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.