Xbox boss Asha Sharma has set a new milestone for Microsoft's gaming division, aiming to reach 500 million daily players by 2030 as part of a wider strategy to recover from recent financial setbacks and major staff cuts
Microsoft's Xbox division has set its sights on a dramatic expansion of its daily player base, with Xbox boss Asha Sharma informing staff that the company is targeting 500 million daily active users by the end of the 2029-2030 financial year. This figure represents the halfway mark towards Xbox's long-term ambition of reaching over a billion people each day, a goal Sharma has described as both challenging and achievable given the company's current portfolio and global reach.
Ambitious Growth Plan
The new target was outlined in an internal memo following a period of difficult financial results for Microsoft's gaming business. Sharma's plan focuses on sustained double-digit growth in both player numbers and engagement, with an emphasis on industry-leading profit margins. The strategy involves doubling down on established Xbox-owned franchises such as Fallout, increasing investment in Minecraft, and expanding the reach of more casual titles like Candy Crush to attract a broader audience.
Sharma's memo arrives shortly after a significant restructuring that saw 1,600 Xbox staff made redundant earlier this month, with another 1,600 expected to depart before the end of the financial year. Four studios have already exited the business, with further changes anticipated. The company's approach is to consolidate resources around its most successful properties and to seek new growth opportunities through global partnerships, including in China.
Current Performance and Challenges
At present, Xbox reports more than 100 million daily active users. However, the division's revenue declined by 10% in the quarter ending 30 June, and full-year revenue for 2026 was down 7% compared to 2025, equating to a drop of approximately $1.7 billion. Xbox's internal margin for the year stood at 3%, notably lower than Sony's 10% and Nintendo's 16% margins for their respective gaming businesses.
To bridge the gap between audience growth and revenue, Sharma has emphasised the need to invest in what players value most. The company's three leading franchises-Call of Duty, Minecraft, and Candy Crush-each generate over $1 billion annually, but further growth will be required from these and other series such as Fallout and Halo to meet the new targets. The next-generation console, currently known as Project Helix, is also in development, though its rumoured high price point could present additional challenges for hardware adoption.
Strategic Shifts and Industry Context
Microsoft's leadership has acknowledged the need for decisive action to reset the Xbox business for long-term growth. CEO Satya Nadella has stated that the company is making necessary changes across its content portfolio, platform, and operations. The focus is on leveraging Xbox's intellectual property and global studio network to return to growth by the 2027 financial year.
As part of its broader strategy, Xbox is exploring new revenue streams beyond traditional game sales, including film, television, consumer products, sponsorships, and live experiences. The company is also forming new partnerships in key international markets. These moves are intended to diversify Xbox's business and reduce reliance on any single franchise or platform.
Player Impact and Remaining Uncertainty
For players, the most immediate impact will be seen in the prioritisation of major franchises and the potential for new content and experiences tied to Xbox's biggest brands. However, the scale of the restructuring and the uncertain reception of premium-priced hardware like Project Helix mean that the path to 500 million daily users is far from guaranteed. The company has acknowledged that recovery will take time, with expectations set for a return to growth by the end of the 2027 financial year.
Xbox's evolving strategy comes at a time when the platform is also addressing player concerns around digital access and account security, as seen in recent efforts to support users affected by account lockouts-a topic previously covered in detail in our report on Xbox's response to digital game library risks.
When discussing daily active users, it's important to distinguish this metric from total player numbers or sales figures. Daily active users (DAU) measure the number of unique individuals engaging with a platform or service each day, providing a snapshot of ongoing engagement rather than cumulative reach. This figure is a key indicator for live-service platforms and is often used to assess the health and growth potential of gaming ecosystems, but it does not directly translate to sales or revenue without additional context.
