Nadella promises a new stage for Xbox and reaffirms commitment to “the most loyal fans

Microsoft acknowledges the drop in revenue as it begins a new era under Asha Sharma's leadership.

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Microsoft has officially presented its financial results for the third fiscal quarter of 2026, and although Xbox continues to experience declines in hardware and game revenue, the company insists that the future of the brand now depends on strengthening its relationship with the community even further.

In fact, Microsoft’s own CEO, Satya Nadella, took advantage of the results presentation to send a direct message related to the future of Xbox and the new direction the gaming division is taking.

Microsoft assures that Xbox wants to refocus on its most loyal players

During the financial conference, Nadella explained that Xbox is entering a new phase marked by:

• More attention to players
• Greater response to community feedback
• Strengthening of the Xbox identity
• New decisions centered on fans

In the words of Microsoft’s CEO:

Xbox is reaffirming its commitment to our fans and most loyal players, while shaping the future of gaming.

The message comes after a complicated quarter for the gaming division. Microsoft confirmed the following declines:

• Game revenue: ↓ 7%
• Xbox content and services: ↓ 5%
• Xbox hardware: ↓ 33%

However, Nadella also wanted to highlight that Xbox continues to grow in other important areas for the company. According to him, Microsoft achieved during this quarter:

• Record number of monthly active users
• Record number of streaming gameplay hours

All this coincides with the start of the new era led by Asha Sharma, who in recent weeks has already begun to drive several important changes around Xbox, including the “We are Xbox” strategy, new decisions related to Game Pass, and a clearer commitment to strengthening the brand’s own identity. The feeling within Microsoft seems quite clear: Xbox wants to regain ground over the next few years and reconnect especially with the brand’s most veteran community.