Xbox CEO Targets Industry-Leading Profit Margins by 2030, Surpassing Sony and Nintendo

Xbox CEO Asha Sharma has set an ambitious goal: make Microsoft's gaming division more profitable than rivals Sony and Nintendo by mid-2030. In a CNBC interview and internal memo, Sharma outlined plans to expand exclusive franchises, grow casual gaming, and invest heavily in Minecraft, while also pushing into film, TV, consumer products, and live experiences, including partnerships in China. The strategy comes as Xbox faces headwinds: US console hardware sales fell 27% year-over-year in September 2026 to an all-time September low, and quarterly revenue declined 10%. Supply constraints and a recent price hike have further pressured sales, while over 1,600 jobs were cut in a 'reset' phase. By comparison, Sony's game division posted a 9.9% operating margin and Nintendo nearly 16% in their latest fiscal years. To close the gap, Microsoft is leveraging its IP beyond gaming through the new XP division, with projects like a Fallout TV season, Call of Duty movie, Diablo animated series, and a Minecraft theme park opening in 2027. If Sharma's vision holds, Xbox could transform from a console-centric business into a cross-media entertainment powerhouse with industry-leading profitability.