--- title: "Xbox Appoints Amrita Sharma as CEO Amid Struggling Division" url: https://newscentral.site/xbox-appoints-amrita-sharma-as-ceo-amid-struggling-division/ language: en publisher: "News Central Site" section: "Business" published: 2026-10-20T16:10:48.000Z updated: 2026-10-21T09:05:08.126Z id: 310def77-f9a6-43dc-9248-272bbc1b065c source: "Fortune https://fortune.com/2026/10/20/the-non-gamer-ceo-racing-to-save-microsofts-xbox/" attribution: "Link to https://newscentral.site/xbox-appoints-amrita-sharma-as-ceo-amid-struggling-division/ and name News Central Site when you quote or summarize this story." --- # Xbox Appoints Amrita Sharma as CEO Amid Struggling Division Satya Nadella appointed 38-year-old Amrita Sharma as CEO of Xbox in February, a move that came after the departure of gaming legend Phil Spencer. A new executive has taken charge at Microsoft's struggling gaming division, tasked with reviving one of entertainment's biggest brands. Satya Nadella appointed 38-year-old Amrita Sharma as CEO of Xbox in February, a move that came after the departure of gaming legend Phil Spencer. Sharma's office is located in the Xbox building, accessible via a 1,100-foot-long bridge from the main offices. The space reflects her new role, with decorations such as Xbox controllers, framed game discs, and a skateboard from Tony Hawk's Pro Skater adorning the walls. The challenges facing Sharma are significant. Xbox's finances have been in disarray, while its market share has declined from its peak years ago. To turn things around, she must address the company's economics and improve its brand image. Sharma is moving quickly to implement changes. She has already cut thousands of staff members and is reimagining how Xbox markets and sells its products. Additionally, she is overhauling the company's tech stack and divesting or reorganizing smaller studios. Her efforts are focused on supporting Xbox's biggest franchises and publishing groups, including Blizzard Entertainment. This shift in strategy aims to boost the brand's performance and increase market share. Sharma has been open about Xbox's poor performance under her predecessor's leadership. She has acknowledged that the company needs significant changes to regain its footing in the gaming industry. As a non-gamer CEO, Sharma is navigating a complex and opinionated boardroom environment. Every decision she makes and every public statement she issues is closely watched by gaming fans and Microsoft's top executives. Sharma's approach to revitalizing Xbox has been marked by bold decisions and a willingness to challenge conventional wisdom. She has made it clear that she values input from gamers and employees alike, recognizing that their passion for the brand can be a powerful catalyst for innovation. To this end, Sharma has encouraged open communication and feedback, using social media platforms to engage directly with fans and share updates on her plans for Xbox's future. Her efforts have been met with enthusiasm by many, who see in Sharma a fresh perspective and a commitment to putting gamers at the heart of the business. However, not everyone is convinced that Sharma's approach will be enough to turn around the struggling gaming division. Some industry observers have raised questions about Microsoft's long-term commitment to the gaming business, suggesting that Nadella may be positioning Sharma for an eventual sale or spinoff. This uncertainty has sparked a lively debate among gamers, investors, and analysts, with many wondering whether a non-gaming executive can truly understand what drives the Xbox brand. The Xbox brand has a rich history, with iconic titles like Halo and Call of Duty cementing its place in gaming culture. The introduction of Xbox Live revolutionized online multiplayer gaming, making it accessible to a wider audience. Meanwhile, the Xbox 360 console was a major player in the mid-2000s, rivaling Sony's PlayStation in sales and shaping the gaming landscape for generations of gamers. Microsoft's acquisition of Activision Blizzard has significantly bolstered Xbox's portfolio, adding blockbuster titles like World of Warcraft and Overwatch to its lineup. The deal is a testament to the company's ambitions in the gaming industry, but it also highlights the challenges that come with managing such a vast and complex business. With the global video game market now rivaling the size of the theatrical box office, Xbox faces intense competition from established players like PlayStation and Nintendo. A closer look at Xbox's recent history reveals a series of strategic missteps and conflicting internal priorities. The introduction of Game Pass, for instance, while successful in building a subscription business, has led to cannibalization of sales for higher-priced first-party game titles. This problem was exacerbated by competing internal metrics within different teams, with some focusing on subscription revenue and others on store revenue. As Microsoft continued to acquire game publishers, including Minecraft-maker Mojang Studios, it neglected its core console business. Despite representing 80% of Xbox's revenue, the console has been overlooked in favor of more lucrative ventures. This oversight has allowed competitors like PlayStation and Nintendo to maintain their edge by offering exclusive titles that lock in gamers. The Activision Blizzard acquisition has further complicated matters, making the overall business more complex and intensifying pressure to show returns on investment. With Xbox now accounting for a significant portion of Microsoft's revenue, the company is under scrutiny to deliver results. The purchase has vaulted Xbox into third place among Microsoft's revenue-generating businesses. A former Xbox employee noted that while individual bets may have been working in isolation, the overall strategy has become out of sync. This sentiment reflects the uncertainty and confusion within the gaming community about Xbox's direction under its new leadership. The fact remains that Xbox is facing a critical juncture, with many wondering whether the company can regain its footing and deliver on its promise to gamers. As the industry continues to evolve, one thing is certain: the next few years will be pivotal in determining the future of the Xbox brand. The decline of the Xbox brand has been a puzzling trend, according to Matt Booty, Xbox's chief content officer, who admits that Microsoft may not have done enough to connect the dots between its various business strategies. In 2001, Bill Gates unveiled the company's first Xbox at the Consumer Electronics Show in Las Vegas, marking a significant milestone for the brand. However, despite being one of the three major console platforms, Xbox has struggled to regain momentum. Recent sales figures have been dismal, with current-generation Xbox consoles selling only about a third as many units as the PlayStation 5, according to estimates from industry analysts. This decline is partly due to higher hardware costs, which have increased significantly due to memory chip shortages. Microsoft's profit margin for the Xbox unit has been around 3%, significantly lower than its competitors' levels and far below what Chief Financial Officer Amy Hood expects from major businesses. This underperformance has sparked concerns about the brand's future. Satya Nadella's appointment of Phil Spencer as head of the Xbox division was seen as a turning point, but it is now clear that Sharma's vision for the brand involves a more radical transformation. Her strategy focuses on hardware, player experience, high-value franchises, and updating Xbox's technology to meet gamers' evolving needs. Sharma aims to create a more personalized gaming experience by allowing players to choose features à la carte, including add-ons for console-only games, cloud gaming, and multiplayer. This tiered system would give gamers more flexibility and options, potentially boosting engagement and revenue. Inside Microsoft's secretive lab, Building 87 on campus, Sharma is working closely with lead designers such as Carl Ledbetter to develop the next-gen Project Helix hardware that could enable mobile play for Xbox games. Regular stand-up meetings over prototypes and strategic partnerships are helping to shape the brand's future. Sharma's ambitious plans include releasing a next-generation handheld device by 2027 and the next console by the 2028 holiday season, marking significant investments in the brand's future. These moves aim to revitalize the Xbox brand and position it for success in an increasingly competitive gaming market. As she navigates the complex world of gaming, Satya Nadella's successor has adopted a unique leadership style, one that emphasizes curiosity over confidence. In meetings, she is often seen sitting back and listening intently, taking in every detail before chiming in with sharp questions or direct feedback. Her colleagues describe her as introverted, but also fiercely attentive to every aspect of the business. She's been known to multitask during discussions, sometimes responding to messages on her phone while simultaneously engaging with team members. This approach has earned her a reputation for being perceptive and insightful, able to cut through complexity and identify key issues. As she herself notes, "As a leader, you're taught to be confident, and I think being curious is way more important." In fact, this curiosity-driven leadership style has been instrumental in shaping Xbox's new strategic direction. By asking probing questions and seeking input from industry experts, Sharma has gained a deeper understanding of the gaming landscape. One notable example of her efforts to engage with gaming culture is her meeting with Blizzard President Johanna Faries. According to Faries, Sharma has led primarily through inquiry, asking a wide range of questions to gain insight into how things work within the company. Meanwhile, Xbox's office walls now proudly display a new motto: "Great games; return of Xbox; future of play." This rallying cry reflects Sharma's commitment to revitalizing the brand and positioning it for success in an increasingly competitive market. The non-gamer CEO racing to save Microsoft's Xbox is focusing on making Minecraft more competitive with popular games like Roblox among younger generations. This effort involves enhancing the game's commercial appeal and presentation of a clear business case for investment. Under Sharma's leadership, studios at Xbox are now required to submit detailed, commercially viable investable business cases rather than relying solely on funding without clear expectations. This shift in approach is evident in various aspects of the company's operations. Sharma has implemented significant cost-cutting measures within Xbox, including reducing headcount by 3,200 over the next year and slashing several management layers. So far, this effort has resulted in approximately 1,868 layoffs, with further reductions planned for November, January, and possibly other months. The restructuring process has been met with mixed reactions from employees. While some appreciate Sharma's transparency about the company's financial situation, others feel demoralized by the ongoing uncertainty surrounding their job security. The decision to stagger layoffs over several months has left staff in a state of limbo, waiting to see if they will be next. The intense restructuring effort is part of Sharma's broader strategy to revitalize Xbox and position it for future success in an increasingly competitive gaming market, with a renewed focus on commercial opportunities and a clear path forward. --- Source: [Fortune](https://fortune.com/2026/10/20/the-non-gamer-ceo-racing-to-save-microsofts-xbox/) Published by News Central Site: https://newscentral.site/xbox-appoints-amrita-sharma-as-ceo-amid-struggling-division/