Microsoft released its annual results, revealing a decline in revenue for the Xbox division for the second consecutive year.

Despite this decline, Asha Sharma, CEO of Xbox, says the company expects a return to growth by this time next year. She believes that the restructuring measures implemented in recent months are beginning to take effect. These include layoffs, a reorganization of the studios, an overhaul of the Game Pass strategy, and a refocus on exclusive games and the most profitable businesses.

Sharma acknowledges that Xbox is going through a difficult period, but assures that these decisions are necessary to build a stronger business in the long term. Microsoft remains confident thanks to its investments in gaming and the evolution of its strategy, with the goal of returning to sustainable growth.

She has stated the following on X:

"In FY26, over 200 million new players came to XBOX and our games, but our business did not grow with our audience. We need to close that gap by investing in what players value. That will take time, but we expect to return to growth by the end of FY27."