Xbox CEO Sharma Claims Growth Recovery After 'All-Time Low' Amid Ongoing Restructuring

Key points

• Asha Sharma stated that Xbox has returned to growth, reaching two to three times the level of its recent low point, according to Windows Central.
• Sharma cited strong launches for Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft: Forever as evidence of recovery.
• Project Helix will be a family of devices, with a home console launching first, followed by portable options, as Sharma noted 'there is not one device that fits all.'
• The restructuring is ongoing, with a 20% workforce reduction already completed and hundreds more layoffs expected, according to Kotaku.
• Sharma reiterated that Xbox is not for sale and emphasized reinvestment in cloud gaming and the Play Anywhere initiative.

Background

Xbox has undergone significant restructuring in 2026, including a 20% workforce reduction and the closure or divestiture of several studios. Rare and the Halo franchise were transferred to Activision, while Obsidian was integrated into Bethesda. Turn 10 was merged with Playground Games. These moves followed speculation that Xbox might be spun out as a separate business, which Sharma recently denied.

How outlets are covering it

GamesIndustry.biz and Windows Central report that Sharma emphasized the return to growth and the strategic direction of Project Helix as a multi-device family. Kotaku highlights the tension between this optimism and the ongoing 'brutal reset,' noting that Chief Content Officer Matt Booty stated the company is only 75% through its restructuring, with hundreds more staff to be laid off. TechPowerUp focuses on the hardware implications, noting that while Sharma did not use the word 'handheld,' her reference to 'on the go' play suggests a portable device, likely built in partnership with ASUS, given Microsoft's existing relationship with the ROG Xbox Ally.

Why it matters

This signals a potential stabilization for Xbox after a period of significant decline and restructuring. The shift to a multi-device strategy for Project Helix could redefine the console market, while the ongoing layoffs indicate that the company is still in a critical phase of its transformation. The recovery in growth metrics suggests that recent strategic decisions are beginning to yield results, but the long-term success of initiatives like the Halo reboot and Game Pass reform remains to be seen.

What to watch

Microsoft will continue to share more details about the Project Helix device family as plans develop. The company is expected to announce further layoffs in the coming months as it completes its restructuring. The next generation of hardware is not expected to have developer kits until 2027, with a consumer release likely following later. Sharma will continue to push for a more flexible Game Pass system and invest in cloud gaming to strengthen the current Xbox Series X|S lineup.