Four C's of Xbox's future outlined in new CEO memo

The future of Xbox will be determined by four C's: Core, content, creation, connection.

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With FY26 now closed and the games division seeing a -$1.7 billion drop in revenue and the worst annual console earnings in over a decade, Xbox CEO Asha Sharma has outlined her plans for what's next for the games division.

In a memo acquired by The Verge, Sharma's strategy centers around four key concepts.

• CORE: Strengthen our platform, led by console
• CONTENT: Grow great games into global franchises
• CREATION: Make Minecraft the world's creator platform
• CONNECTION: Extend the worlds that fans love

Xbox plans to accelerate and grow Minecraft even more than it already is, potentially indicating that Microsoft expects to utilize the cloud to grow access and spending in this way. Sharma says Xbox will invest in Minecraft "more than ever before."

Xbox's four-part plan sounds similar to the pillars that guide EA, which are: Play, Watch, Create, and Connect.

Sharma will execute the plan in three stages:

• FY27 - Xbox returns to growth
• FY28 & FY 29 - Four C's model implemented
• FY30 - Scale what works so that Xbox can be "halfway to our long-term daily-player goal with sustained double-digit growth in players and engagement and industry-leading margins."

"In FY28 and FY29, our Four C's and roadmap must move into businesses producing meaningful player value and revenue acceleration," Sharma says in the memo.

Xbox going from a 3% margin to industry-leading margins might be tough to pull off in the next four years, but the group still has another 1,600 layoffs to conduct throughout FY27, which could represent a substantial portion of Xbox's growth potential via reducing costs.

Frequently Asked Questions

Open a question for an answer from TweakTown's coverage of this news, or ask your own below.

Question #1

How does Xbox plan to grow 'Content' into global franchises according to the memo?

The memo states Xbox will "grow great games into global franchises" as its CONTENT priority. It says Xbox will invest in Minecraft "more than ever before" and potentially use the cloud to expand access and player spending. Sharma plans to implement the Four C's in FY28 and FY29 and scale what works by FY30 to drive player and revenue growth.

Question #2

How will 'Connection' extend the worlds that fans love—does the memo mention cross-platform, cloud, or community initiatives?

The memo simply labels Connection as "Extend the worlds that fans love" and does not provide details in the article about how that will be done. It does not mention cross-platform, cloud, or community initiatives in relation to Connection.

Question #3

What timeline did Asha Sharma set for the Four C's rollout and the company's return to growth?

Answer question

Question #4

What financial or player-metric targets did the memo cite for FY30 (daily players, growth, margins)?

For FY30 the memo says Xbox aims to be "halfway to our long-term daily-player goal" while delivering sustained double-digit growth in players and engagement and achieving industry-leading margins. The memo does not specify exact daily-player numbers, the specific percentage range for double-digit growth, or a concrete margin target.

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