Xbox CEO Asha Sharma addressed staff in a town hall this week, claiming the division has clawed its way back from an all-time low after shedding more than 1,800 positions and completing a broad restructuring. Sharma stated that first-party revenue has returned to growth at a pace two to three times higher than prior levels, though she offered no concrete metrics or comparisons to support the assertion.

The executive credited recent releases including Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft: Forever with strong starts, while noting earlier declines in hours played, player counts, and revenue have now stabilized in some areas. She described previous Game Pass strategies as having driven profitability into freefall, leading to price adjustments and content shifts, and outlined a vision of reaching one billion daily active users through focused investment in core franchises and a forthcoming family of devices under Project Helix.

Restructuring efforts, including studio divestitures and further planned cuts, are not expected to conclude until next summer, with Microsoft CEO Satya Nadella publicly praising the depth of reductions. Positive brand sentiment reportedly rose 30 percent year-over-year amid these changes, though community and industry reactions remain mixed as the division continues its reset.