Xbox CEO knows there's "work to do" to win players back, as Microsoft boss recommits to "core" fans

Spring is the season of rebirth, and Microsoft appears to be reveling in the winds of change. Recently, it was reported that its gaming division would be returning wholly to its Xbox roots. Game Pass has gotten cheaper; a change that benefits anyone who wasn't banking on playing this year's Call of Duty via the service. Meanwhile, fledgling Xbox CEO Asha Sharma has teased further collaboration with Discord.

It's only been two months since Sharma took over Xbox's top job from Phil Spencer, but she's clearly used that time productively. I'm not one for puff pieces, but I will say I like what I'm seeing so far. Xbox has mismanaged its identity in recent times, alienating its community with its multi-platform publishing strategy to the extent that buying an Xbox console inherently feels like a bad deal. Why buy a console without exclusives when you can buy a PS5 instead? Of course, in an ideal world, exclusivity wouldn't be a thing - I'm still annoyed that FromSoftware's next soulslike game, The Duskbloods, is only going to be on Switch 2. However, the market isn't utopian, and it feels like the growth of Microsoft's gaming division has suffered for it.

Statistically, at least, things aren't looking too bad. Microsoft's most recent earnings report saw the tech monolith's revenue rise a solid 18% overall year-on-year, though Xbox content and services saw a 5% drop. The firm attributes this to the previous year having "strong first-party content," so it's more of a case of suffering from success. Hardware continues to plummet, but it's hardly surprising that it's fallen 33%. We're at the business end of the current console generation, so most players will already have snapped a Series X or S up. The recent price hikes won't have done sales any favors, either, so there are macroeconomic factors at play. Honestly, I can't see Microsoft being too fussed about it at this point.

Responding to the report on X earlier today, Sharma states: "While we have made progress expanding the business and our margins, player and revenue growth has not yet met our ambition. We know we have work to do to earn every player today and into the future."

Despite falling short, the signs are already promising. Microsoft boss Satya Nadella revealed during the earnings call accompanying the report that new quarterly records for monthly active Xbox users and game streaming hours had been set. Nadella also says that the Xbox team is "recommitting to our core fans and players," and Microsoft is undertaking "the foundational work required to win back fans."

The Game Pass price drop is already a step in the right direction to improving player perception, considering the current financial climate. The question, then, is how Microsoft and Xbox will continue to generate momentum. Recently, Sharma and Xbox Chief Content Officer Matt Booty co-penned a message to the team, stating that "Xbox will be built to be affordable, personal and open." Going forward, there'll be a big focus on things like delivering PC-console hybrid Project Helix, expanding its franchise portfolio, becoming the destination platform for creators, and improving how its community connects. Basically, everything has to get bigger and better, without breaking the bank for players, and I can get on board with that.