Satya Nadella
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Xbox delivers record monthly active users, but hardware revenue is still in decline
Microsoft's Xbox division achieved record monthly active users in Q3 FY26, despite a 7% year-on-year decline in overall gaming revenue. This decrease was primarily driven by a 33% drop in Xbox hardware revenue due to lower console sales volume and a 5% decrease in content and services revenue. New Xbox CEO Asha Sharma aims to revitalize the division, focusing on core fans and improving engagement, with initiatives like adjusting Game Pass pricing.
Xbox hardware revenue drops 33% year-on-year during Q3
Microsoft reported a 33% year-on-year drop in Xbox hardware revenue for its third quarter, alongside a 5% decrease in Xbox content and services. CEO Satya Nadella stated the company is focusing on foundational work to regain player engagement and improve quality. Recent changes to Game Pass pricing and strategy, including a renewed focus on daily active players and expanding into new markets, are part of Xbox's plan for sustainable growth.
Xbox CEO Reacts To Yet Another Disappointing Period For Xbox
Microsoft's latest earnings report reveals continued downward trends for the Xbox division, with gaming revenue decreasing by 7% due to lower content and services, and softer hardware sales. Despite record monthly users and game streaming hours, Xbox revenue is forecast to decline further in the coming quarter. Xbox CEO Asha Sharma acknowledged that player growth has not yet met ambitions, while CEO Satya Nadella stated the company is working to "win back fans."
Xbox boss warns "memory costs will impact pricing, will impact availability" when it comes to Project Helix
Xbox boss Asha Sharma acknowledged that the ongoing memory shortage crisis will impact the pricing and availability of its next-generation console, codenamed Project Helix. Sharma stated that Microsoft is considering these factors as part of its equation to ensure accessibility for players. The crisis, exacerbated by AI data centers consuming large amounts of memory, is reportedly causing Sony to consider delaying its own next-generation console rollout.
'We'll Share More When We're Ready': Xbox Wants to Make the 'Right Decision' on Exclusivity and PS5
Xbox is carefully considering its approach to game exclusivity and multiplatform releases, with new CEO Asha Sharma stating that the company will make data-driven and strategic decisions. Sharma, who has been in her role for approximately 60 days, indicated that these are significant, long-term choices that require thorough evaluation before any announcements are made.
What you need to know as Elon Musk's lawsuit against Sam Altman begins
Jury selection is set to begin in the lawsuit filed by Elon Musk against Sam Altman and OpenAI, alleging fraud in the company's reorganization into a for-profit entity. The trial could significantly impact the artificial intelligence industry, with Musk seeking to revert OpenAI to its original nonprofit structure and demanding significant financial damages. Legal experts suggest undoing the reorganization is unlikely, but the jury's decision on fraud allegations could lead to substantial monetary penalties or leadership changes.
Microsoft CEO sees Xbox as "critical audience and category" that's "really important to the company’s future" says Asha Sharma
Xbox CEO Asha Sharma views Microsoft CEO Satya Nadella's ten-year vision as placing Xbox as a critical audience and category for the company's future. Sharma and Chief Content Officer Matt Booty aim to return Xbox to growth next year by focusing on daily active players and making services like Game Pass more affordable and flexible.
Xbox Is Flip-Flopping on PS5 Again, and It's Truly Getting Tiring
Xbox is reportedly re-evaluating its strategy regarding releasing games on PlayStation 5, a move that has become a recurring and tiring cycle for the company. Despite past commitments to broader platform availability and statements from executives like Phil Spencer and Satya Nadella, the debate over exclusivity continues to resurface. This constant back-and-forth creates uncertainty and fatigue among players and observers alike.
Microsoft to Announce Lay-Offs Affecting 15 Percent of Gaming Division – Rumor
A rumor suggests Microsoft is planning to lay off 15 percent of its gaming division workforce, with an announcement potentially coming in early May or June. This follows a hiring freeze in other divisions and comes after recent leadership changes, including the appointment of Asha Sharma as CEO of Microsoft Gaming and the departures of Phil Spencer and Sarah Bond.
Killing "This Is An Xbox" Campaign Was New CEO's Decision - Report
Xbox's new CEO Asha Sharma reportedly decided to end the "This is an Xbox" marketing campaign shortly after taking the helm. Sharma is also focused on improving Xbox console sales, aiming for the platform to be a "reference console" against which others are judged. This shift follows the departure of former CEO Phil Spencer and Xbox president Sarah Bond.
Two more senior Xbox leaders exit Microsoft
Two senior leaders, corporate VP Lori Wright and general manager of gaming AI Haiyan Zhang, have departed Microsoft after over a decade of service. Zhang will be joining Netflix's gaming team, while Wright's next steps are unannounced. These exits follow recent leadership changes at Xbox, including the retirement of Phil Spencer and the departure of Sarah Bond.
Tech creator proves for a second time that AA batteries are not a practical power alternative for your gaming PC
A tech creator demonstrated that 64 AA batteries can power a gaming PC for approximately 33 minutes, an improvement over a previous attempt. This experiment highlights the significant power demands of modern technology, including AI data centers, and the ongoing challenges in meeting them, even for major tech companies.
Another longtime Microsoft executive is retiring
Rajesh Jha, Microsoft's head of Experiences + Devices, is retiring after over 35 years with the company. Jha oversaw key products like Windows, Office, and Teams. His departure follows other high-profile exits from Microsoft, including Xbox chief Phil Spencer and his successor Sarah Bond. Four members of Jha's team will be promoted to executive vice president roles reporting directly to CEO Satya Nadella.
Phil Spencer Was Good for Xbox, but His Legacy Is Complicated - IGN
Phil Spencer is retiring after 38 years with Microsoft, concluding a 12-year tenure as Head of Xbox. His legacy is viewed as complicated, with shareholders seeing massive stock growth while some hardcore gamers point to increased subscription prices, fewer exclusives, and studio closures. Despite these criticisms, the article argues Spencer was a net positive, crediting him with saving Xbox during the Xbox One era, championing features like backwards compatibility and cross-play, and building a strong portfolio of studios and games.
Texture pop-in may be about to pop-out of existence thanks to even faster asset streaming ushered in by new Zstandard…
Microsoft has detailed improvements to its DirectStorage 1.4 technology, focusing on enhanced GPU decompression algorithms like Zstandard (Zstd) to speed up asset streaming and reduce texture pop-in. Several GPU manufacturers, including AMD, Nvidia, Intel, and Qualcomm, are collaborating to optimize Zstd decompression for their hardware, with driver updates expected in the latter half of 2026.
Until Dawn remake dev Ballistic Moon has closed
Ballistic Moon, the developer behind the 2024 remake of Until Dawn, has officially closed down. The studio experienced multiple rounds of layoffs starting in September 2024, with a final notice of dissolution filed in February 2026. Separately, Microsoft revealed early technical details for its next-generation Xbox console, codenamed Project Helix, which will feature a custom AMD SOC and significant advancements in ray tracing and neural rendering, with developer dev kits expected in 2027.
Microsoft Has Seemingly Retired “This is an Xbox” Marketing Campaign
Microsoft appears to have retired its "This is an Xbox" marketing campaign, with related content removed from Xbox Wire. The campaign, spearheaded by former Xbox president Sarah Bond, aimed to position Xbox as a multiplatform brand through services like Game Pass and Xbox Cloud Gaming. This move follows recent leadership changes at Microsoft Gaming, including the departure of Bond and the appointment of Asha Sharma as CEO.
Xbox unveils first tech details of its next generation console, codenamed Project Helix
Microsoft's Xbox division has revealed initial technical details for its next-generation console, codenamed Project Helix, which is expected to feature a custom AMD-based SOC and significant advancements in ray tracing and neural rendering techniques. Hardware dev kits are anticipated by 2027, with a focus on delivering a high-performance, player-first experience. Microsoft CEO Satya Nadella reaffirmed the company's commitment to investing in its gaming business.
Microsoft's CEO to Xbox: We will "always" invest in gaming
Microsoft CEO Satya Nadella participated in an internal Q&A session hosted by Xbox CEO Asha Sharma, where he affirmed Microsoft's ongoing commitment and investment in the future of Xbox gaming. The discussion focused on the long-term vision for the Xbox brand.
Quoteworthy
Microsoft CEO Satya Nadella has pledged continued investment in the video game sector following recent leadership changes within Xbox. This commitment signals Microsoft's ongoing dedication to its gaming division and future growth.