Asha Sharma Says “Hard Choices” Are Needed to Make Xbox Stronger

In just nine days, Microsoft will air its annual Xbox Games Showcase, the first edition overseen by Asha Sharma, the new CEO of Xbox. We should actually get used to the recent Xbox to “XBOX” rebrand, which will likely be front and center during the event.

Sharma apparently recorded a segment for the big tentpole event, and she also tried to rally the team with an internal memo sent to employees shared by The Verge’s Tom Warren. This is a challenging moment for XBOX, and Sharma hinted that more changes are needed to align Microsoft’s gaming division with its new ambitions.

Countdown to XBOX Games Showcase pic.twitter.com/i8RgCyOVgM

— ASHA (@asha_shar) May 22, 2026

“We are building a stronger XBOX. That means making hard choices about what we build, where we invest, and what kind of company we need to be going forward,” Sharma said in the memo. “That is part of what you are starting to see in the shift from Xbox to XBOX. It reflects a decision to be deliberate in how we show up for the players who care most about this brand.”

XBOX recently enjoyed some positive buzz after the timed Xbox console exclusive Forza Horizon 6 received critical acclaim. The recent price drops for Xbox Game Pass Ultimate and PC Game Pass were also well received, and Sharma said in her memo that there was already a positive impact on subscriptions.

“Growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year,” Sharma said. “Since our price reduction we have seen acquisitions grow and retention improve, which is a good first step.”

The exec added that the XBOX team still had to “learn quickly” to take advantage of this momentum. “We will not solve this in one moment or one launch,” the exec said. “We will have to outwork the problem in front of us in our path to restore durable growth.”