Xbox CEO Declares Organization Is Not in a Stable Condition, Highlighting the Urgency for a Business Overhaul in the Upcoming 100 Days

As Xbox gears up for its most crucial gaming event in years, new CEO Asha Sharma has provided insights into her initial 100 days leading Microsoft’s gaming division and her vision moving forward. In a conversation with Bloomberg Tech 2026, Sharma underlined the significance of grasping “the soul of Xbox,” a notion that has intrigued fans since her surprise appointment this year to take over from Phil Spencer.
A key issue highlighted was the escalating cost of Xbox hardware. Sharma disclosed that factors such as AI, memory, and storage have experienced price hikes of 2.75 times, resulting in increased production expenses. This scenario has led Microsoft to allocate funds for subsidies to maintain consumer price stability, suggesting that the $400 Xbox Series S and the $650 Xbox Series X might still be operating at a loss. Sharma conveyed her dedication to ensuring Project Helix, the forthcoming next-gen console, remains financially feasible despite market obstacles.
Sharma’s vision for Xbox’s future extends beyond consoles. While recognizing the significance of hardware, she pointed out a wider strategy that encompasses growth in PC and mobile gaming. When asked about the possibility of handheld devices, Sharma did not confirm any intentions for Xbox to create its hardware but indicated that the company would prioritize licensing agreements, similar to the Rog Xbox Ally.
Regarding her operational autonomy, Sharma mentioned that her leadership style does not center around strict profit margins, especially the reported 30 percent margin threshold. Rather, her aspiration is to position Xbox as the foremost company in gaming and entertainment. She admitted that the current condition of Xbox is “not healthy” and pledged to initiate a business overhaul in her upcoming days. This commitment was reflected in her distancing from the contentious Activision Blizzard acquisition, which she linked to pre-established strategies that may no longer suit Xbox’s trajectory.
A major concern for the Xbox community is the potential alterations in game exclusivity, a subject Sharma approached with caution. As the second-largest game publisher worldwide, she acknowledges the necessity for broad audience engagement while also valuing exclusivity as crucial for the expansion of the Xbox platform. Sharma’s strategy indicates a careful consideration of game releases, potentially allowing some titles to be available on multiple platforms while reserving others exclusively for Xbox and PC.
The forthcoming Xbox showcase is expected to illuminate how Sharma intends to address these challenges and opportunities within the gaming landscape, aiming to meet both industry expectations and community desires.