Microsoft's Xbox chief lays out plan to pass rivals on margin by 2030
Microsoft's new Xbox CEO Asha Sharma has outlined a strategic plan to improve the gaming division's profitability and margins by 2030. The company is focusing on exclusive titles, cost-cutting measures, and expanding into new markets and media formats to reverse recent revenue declines.
Why it matters
As a major player in the gaming industry, Microsoft's shift in strategy could significantly impact console market competition and the future of subscription-based gaming models.
Microsoft's new Xbox chief is looking to push the gaming unit's margin back in line with its rivals by next year and beat them on profitability by mid-2030.
"We will not live on past successes or be trapped by past failures," CEO Asha Sharma wrote in a Thursday message to staff members that CNBC viewed. "We will learn from both and put our energy into creating what players will love for decades."
Sharma, a former Instacart and Meta executive, replaced Phil Spencer as Xbox CEO in February. She has since appointed new leaders , lowered Game Pass subscription prices and announced layoffs and divestitures of four development studios. Sharma has put more emphasis on exclusive titles for the Xbox console, delighting gamers who have seen the subsidiary bring franchises to Sony's PlayStation.
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