Xbox CEO Asha Sharma said a healthy console business is necessary but not sufficient for success. She spoke in an interview amid ongoing layoffs at Microsoft Gaming.
Sharma told Fortune that the company spread itself too thin over the past decade by making multiple bets instead of focusing on its core business. She noted that the number one measure of strategy is resource allocation.
The comments come as Microsoft proceeds with 3,200 layoffs across its gaming division this fiscal year. Five acquired studios are being spun off while others face cuts.
Sharma highlighted new exclusives such as Gears of War: E-Day and said Minecraft has funded other teams even as it lags behind competitors like Roblox. She wrote that Xbox aims to entertain more than a billion people daily and return to growth in 2027.
