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

Q: 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.

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

Sharma will execute the plan in three stages: FY27 , Xbox returns to growth; FY28 and FY29 , the Four C's model is implemented; FY30 , scale what works to be "halfway to our long-term daily-player goal" with sustained double-digit growth in players, engagement, and industry-leading margins.

Q: 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.

Xbox CEO Asha Sharma has attached four C's to the future of the brand--core, content, creation, connection--that will help the division return to growth.

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Derek Strickland

Senior Gaming Editor

Published Jul 30, 2026 7:37 PM CDT

45-second read time

TL;DR: Xbox CEO Asha Sharma unveiled a four-part strategy-Core, Content, Creation, Connection-to return Xbox to growth after a $1.7B FY26 revenue decline. Plans: strengthen consoles, expand games into franchises, scale Minecraft as a creator platform, and extend fan worlds. FY27 aims to regain growth; FY28-29 implement the model; FY30 scale successes.

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

Four C's of Xbox's future outlined in new CEO memo 1

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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.

Read more: Xbox to hold major layoffs as profit margins drop to 3%
Read more: Xbox expected to vaguely 'return to growth' this year in FY27
Read more: Xbox has made progress expanding margins, new CEO says

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

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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.

Answered

Question #2