IT News on October 7th: Technology media Windows Central reported yesterday (October 6th) that at a recent internal staff meeting, Microsoft Xbox CEO Satya Nadella stated that before this year's reorganization, Microsoft Xbox's gaming business was in a "freefall" decline, but it has now returned to a growth trajectory.
At a meeting with all staff, Sharma stated that at the beginning of 2026, Microsoft's Xbox was experiencing declines in duration, player base, and revenue. The previous Game Pass strategy had led to a "freefall" in Xbox. However, now the first-party (Xbox self-publishing) has resumed growth, and she mentioned that the growth rate has reached "2-3 times" that of the trough, with expectations that this growth will continue.
She also specifically mentioned that "War Machines: Incident Day" ( Gears of War : E-Day ), "Minecraft: Dungeons 2" ( Minecraft Dungeons II ), and "World of Warcraft: Unlimited" ( World of Warcraft Forever ) had a "strong" start, and noted that in the past year, the brand's popularity has increased by about 30%.
In terms of gaming consoles, Sharma proposed a "Four Cs" strategy that will focus on Core (core), Content (content), Creation (creation), and Connection (connection). He emphasized that even if the overall console market does not grow, Xbox still has the opportunity to continue to grow in this segment.
Charma stated that they will advance Xbox Cloud Gaming, the conversion of discs to digital format (disc-to-digital), as well as the expansion of Xbox Play Anywhere; at the same time, he hinted that Game Pass will be more "flexible" in the future, allowing players to customize their subscriptions based on content type.
Charma also mentioned the tenth-generation devices (currently the ninth generation, denoted as Xbox Series S |X), clearly stating that the tenth generation will consist of "a series of devices," and that there is no such thing as "one device that suits everyone." The translation of Sharma's speech by IT Home is as follows:
We are transitioning to the tenth-generation console product line. No single device can meet the needs of all users. Of course, we will launch an excellent home gaming console first, but we also know that many players often use their consoles while out and about. In some areas, we have world-class manufacturing capabilities, while in other areas, we will seek partnerships. As the plan progresses, we will share more relevant information. The operating system currently looks very impressive, and we are very excited about that.
Regarding the BattleNet (Battle.net), Sharma stated that the user retention rate of Battle.net is almost on par with that of Steam, and they will continue to expand this rate through partnerships with CD Projekt RED and others; at the same time, he emphasized that Battle.net will maintain a more "selective" ( curated ) positioning compared to Steam / Xbox PC.
For developers, Sharma promised to simplify the process and organize API, making it easier for them to release games on Series X |S, Helix, and Xbox PC – which directly addresses the pain points that developers have complained about for many years, such as "difficult release / complex adaptation".
