Xbox chief says the hard reset is already paying off

According to gaming division head Asha Sharma, Xbox is beginning to recover after a period she described as the worst in its history. At an internal employee meeting, she reportedly discussed the results of Xbox’s so-called major reset, which involved extensive cuts, studio closures and hundreds of layoffs.

Sharma said the painful process is already paying off. “We’re making the right decisions to reinvest in the business. After hitting a historic low, we’ve started to return to growth, more than doubling or tripling where we were, and we expect that to continue,” she said, according to Windows Central.

The Xbox chief also pointed to the successful launches of several games, including Minecraft Dungeons 2, Gears of War: E-Day and World of Warcraft: Forever. She also said that perceptions of the Xbox brand had improved by 30 percent year over year.

The return to growth comes after an exceptionally tough restructuring. Xbox has repeatedly laid off staff, closed studios and canceled projects in recent years. According to Xbox Game Studios head Matt Booty, the reset is currently about 75 percent complete, meaning further staff cuts are still to come.

Microsoft also wants to strengthen the Xbox platform itself. Sharma mentioned further development of the Play Anywhere and Disc-to-Digital features, easier game development and a more flexible Game Pass. She also considers connecting Xbox with other platforms and devices an important part of the strategy.

The discussion also turned to the next generation of hardware. Sharma confirmed that the 10th-generation Xbox won’t be built around a single device. Microsoft is preparing a whole family of devices under the Gen 10 label, with Project Helix set to be an important part of it.

“We’re moving toward a family of devices for Gen 10. There isn’t one device that works for everyone,” Sharma said. Microsoft still wants to offer a high-quality traditional console, while also catering to players who want to game on the go. For some devices, Microsoft will also work with third-party manufacturers.

The strategy is expected to be built around an operating system that unifies the user experience across different hardware. An early version of this approach can already be seen in the combination of Xbox Series X/S consoles, Windows PCs and handheld devices such as the Xbox Ally X from Asus.

Sharma also suggested that collaborations between Xbox and other brands will continue. She cited the recent arrival of The Witcher 3 on Battle.net as an example, adding that similar curated collaborations may not be the last.

After a period of significant cuts, Xbox is trying to show that the restructuring was more than a defensive move. Sharma says it is already delivering early results, and Microsoft wants to use the renewed growth as a foundation for the next version of its gaming platform. Only the coming quarters will show whether the trend continues.

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