Xbox CEO Asha Sharma's Turnaround Fails to Move Sales or Engagement, Circana Analyst Says

Xbox's recent strategic shifts under CEO Asha Sharma have not improved the console's sales or engagement, according to Circana analyst Mat Piscatella. Speaking to The Game Business, Piscatella said moves like the disc-to-digital program and making Gears of War: E-Day exclusive to Xbox "haven't made any difference" in hardware sales. He noted that while E-Day is a "gorgeous" game, its exclusivity "chops the legs out" from under its potential to boost the platform. Removing new Call of Duty titles from Game Pass also backfired, with Modern Warfare 4 losing "a ton of engagement" with no benefit. Piscatella suggested these decisions are aimed at "Twitter likes" from hardcore fans rather than actual results. Sharma, who took the role in February, has acknowledged the need for a long-term view, targeting a return to growth by fiscal 2027 and aiming to match rivals Sony and Nintendo on profit margins by 2027 and surpass them by mid-2030. Xbox currently reports a 3% internal margin, versus 9.9% for PlayStation and 16% for Nintendo. For now, the data shows no signs of positivity, leaving Xbox's future uncertain.