Microsoft's Xbox chief lays out plan to pass rivals on margin by 2030 in memo to employees

Microsoft’s new Xbox chief, Asha Sharma, outlined an aggressive turnaround plan for the gaming division, targeting margin parity with rivals by next year and industry-leading profitability by 2030. The strategy includes deeper investment in Minecraft, expanded global partnerships including China, and growth in casual gaming through Activision Blizzard’s King and Candy Crush. The memo comes after Xbox posted a 10% quarterly revenue decline, its weakest since 2022, even as Microsoft’s broader business beat expectations. The article suggests Microsoft is resetting Xbox after heavy spending, a lowered Game Pass price, layoffs, studio divestitures, and shifts away from some day-one Call of Duty access. Investors may view the plan as a long-term profitability roadmap for a business that has lagged Sony and Nintendo in both margins and console shipments.