Citing a transcript of an internal gathering that followed a turbulent stretch marked by hundreds of job cuts, studio divestments and internal closures, a report by Windows Central says that Sharma acknowledged that Xbox entered 2026 facing severe headwinds, with user engagement hours, active player counts and top-line revenue all sliding downward. Xbox CEO Asha Sharma has reportedly addressed company staff in her first company-wide town hall since sweeping summer layoffs hit Microsoft’s gaming division, laying out a comprehensive roadmap to stabilise the brand, committing to traditional console players and preparing for next-generation hardware.
Rather than relying on a single piece of living-room silicon, Microsoft is designing a broader suite of hardware options: “We are moving to a family of devices for Gen-10. Looking ahead, Sharma confirmed early architectural details regarding Xbox’s tenth-generation platform, internally codenamed Xbox Helix. There is not one device that fits all. We will certainly have a great console first, but we also know that many players will be on the go. There are some things that we are the best in the world to manufacture, and there are other things that we will partner on… The operating system is starting to look really good. We’re very excited about this.”