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.