# Xbox revenues dipped $1.7 billion last year, but Asha Sharma predicts a ‘return to growth’ by mid-2027

- URL: https://talkfuse.com/story/xbox-revenues-dipped-1-7-billion-last-year-but-asha-sharma-predicts-a-return-to-growth-by-mid-2027/
- Published: 2026-07-30T22:01:21+00:00
- Updated: 2026-07-30T22:13:31+00:00
- Original publisher: PC Gamer
- Original article: https://www.pcgamer.com/gaming-industry/xbox-revenues-dipped-usd1-7-billion-last-year-but-asha-sharma-predicts-a-return-to-growth-by-mid-2027/
- Topics: Entertainment, Gaming

## Key points

- Xbox revenue dropped $1.7 billion last year.
- Microsoft is restructuring its gaming business.
- Xbox expects growth to resume by mid-2027.

## Summary

Xbox’s annual revenue fell by $1.7 billion despite efforts to expand the brand through subscriptions, cloud gaming and releases on more platforms. The decline matters because it underlines the challenge facing Microsoft’s gaming business after major investment, while new Xbox chief Asha Sharma says the division should return to growth by the middle of 2027.

Sharma has described Xbox as needing a business reset, with margins reportedly well below those of comparable platform and publishing businesses. The company is restructuring operations and reducing costs, while seeking to turn its large audience, games catalogue and services such as Game Pass into more dependable revenue growth. The forecast is a target rather than a guarantee, and follows a period in which hardware and content-and-services revenue have both weakened.

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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.