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Xbox’s paradox year: 200 million new players, $1.7 billion less revenue

Xbox experienced a paradox in fiscal year 2026, attracting over 200 million new players while simultaneously facing a $1.7 billion revenue shortfall. Microsoft CEO Satya Nadella and Xbox CEO Asha Sharma acknowledged the need for significant changes in content, platform, and operations to close this gap and return to growth by the end of FY27.

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