Xbox CEO Asha Sharma says Microsoft's gaming business has started returning to growth after a difficult period marked by layoffs, studio changes and broader restructuring.
According to a reported transcript from an internal town hall meeting, Sharma told employees that Xbox's first party business has begun recovering while player engagement has stabilized after year over year declines.
She also discussed Project Helix, Microsoft's next generation Xbox hardware strategy, describing it again as a family of devices rather than a single console.
The comments suggest Microsoft is continuing to invest in traditional Xbox hardware while also preparing for a broader ecosystem that could include handheld systems and partner built devices.
Xbox Says Recent Games Have Started Strongly
Sharma reportedly said Xbox is seeing improvement after reaching what she described as an all time low.
The company has started returning to growth and is currently performing at more than two to three times its previous level, with Microsoft expecting that trend to continue.
Several recent first party releases were highlighted as examples.
| Xbox area | Reported update |
|---|---|
| First party games | Returned to growth |
| Player engagement | Stabilized after declines |
| Gears of War: E Day | Strong start |
| Minecraft Dungeons 2 | Strong start |
| World of Warcraft Forever | Strong start |
| Xbox brand sentiment | Reportedly up 30 percent |
| Next generation hardware | Project Helix family of devices |
| Traditional console | Still a major priority |
| Portable gaming | Additional focus expected |
Gears of War: E Day, Minecraft Dungeons 2 and World of Warcraft Forever were all described as having strong launches.
Sharma also reportedly said positive sentiment around the Xbox brand has increased by around 30 percent over the past year.
These claims come during a period when Microsoft has been making major changes to the structure of its gaming business.
The broader reset has included job cuts, studios being separated from the company and development teams being reorganized under different parts of Microsoft's gaming operation.
Project Helix Will Include More Than One Device
Project Helix was another major topic during the meeting.
Sharma again described the next generation Xbox strategy as a family of devices rather than a single piece of hardware.
She said Microsoft still intends to deliver a strong traditional console first, but the company also expects more players to use Xbox experiences while travelling or away from a television.
That creates room for additional handheld devices.
Some hardware may be designed directly by Microsoft, while other products could arrive through partnerships similar to the ROG Xbox Ally approach.
Sharma said Microsoft will focus on manufacturing the products where it has the strongest internal advantages and work with partners in areas where collaboration makes more sense.
She also said the operating system for the new hardware is starting to look strong and that the company is excited about its progress.
No detailed Project Helix specifications were provided.
Microsoft Still Plans to Invest in Current Xbox Consoles
The company's current hardware generation is also expected to receive further investment.
Sharma acknowledged that the console industry has become relatively stagnant, but she argued that Microsoft still needs to strengthen the position of Xbox hardware.
Several existing initiatives were mentioned as part of that strategy.
The recently introduced disc to digital program is intended to give players more flexibility with physical game libraries, while cloud gaming continues to expand access beyond traditional consoles.
Xbox Play Anywhere is another important part of the plan because it allows compatible games and progress to move between Xbox consoles and Windows PCs.
These services increasingly show how Microsoft views Xbox as an ecosystem rather than only a console business.
Sharma has also recently rejected suggestions that Microsoft plans to sell Xbox.
At the same time, Microsoft continues reorganizing its development structure. Recent changes have reportedly included moving Halo under Activision's control, placing Obsidian's RPG team within Bethesda and securing an agreement for Hideo Kojima's upcoming action espionage project to come to Xbox rather than PlayStation.
The latest internal comments suggest Microsoft believes the most difficult period of its Xbox restructuring may be starting to produce measurable improvements.
Project Helix will be a major test of that strategy. Microsoft appears committed to maintaining a traditional console while expanding Xbox into handhelds, partner hardware, cloud gaming and cross platform services, creating a broader hardware and software ecosystem for its next generation.
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