Xbox CEO Asha Sharma reportedly told Microsoft gaming staff that the company’s previous Game Pass strategy sent Xbox into “freefall” balance-sheet declines. The account comes from an internal town hall transcript shared with Windows Central and verified by sources the outlet describes as trusted; it is not a Microsoft-issued transcript. The report does not quantify the decline or establish that Game Pass alone caused Xbox’s broader business problems.
What Sharma reportedly said about Game Pass
Windows Central’s October 6, 2026, report says Sharma discussed Xbox’s recent performance during an internal town hall. The outlet describes the prior Game Pass strategy as having sent Xbox into “freefall” declines on the balance sheet. That wording is reported by Windows Central from a transcript shared with the outlet; it is not presented as a complete verbatim sentence from a public Microsoft document. Windows Central’s report
The distinction matters: the story gives no financial figure for the “freefall,” such as a percentage decline, loss amount, or subscriber count. It also does not demonstrate that Game Pass by itself caused all of Xbox’s difficulties.
What the report says about Xbox’s performance
Windows Central says Xbox had been declining earlier in 2026 in hours spent, players, and revenue. Sharma reportedly described hours spent as stabilized. The outlet’s update clarifies that the reported return-to-growth claim applied to first-party games Xbox owns and publishes—not to the entire Xbox business.
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Sharma was quoted as saying, “after an all time low, we’ve started to return to growth, more than 2 to 3 times what we were, and we expect that continue.” In the report’s updated context, that growth language refers to Xbox-owned and published first-party games. It should not be read as a company-wide revenue growth rate or proof that every Xbox metric has turned upward. Windows Central’s report
Windows Central also attributes to Sharma a claim that positive brand sentiment had increased 30% over the past year. The report does not supply the survey, sample, or methodology behind that figure, so it is a reported town-hall claim rather than an independently assessable measurement.
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Why Call of Duty is part of the discussion
Windows Central’s reporter interprets the “freefall” remark as likely involving damage on both sides of Call of Duty and Xbox Game Pass. That is the reporter’s explanation, not an independently established causal finding in the material reviewed. The report does not provide evidence that isolates Call of Duty’s effect from other factors or confirms that it was the sole reason for the reported balance-sheet decline.
What Xbox’s reported reset could mean
The town-hall account presents the remarks as part of a broader reset focused on investment in current Xbox Series X|S consoles, and on fans and franchises. It also points to possible future changes in how Game Pass serves players. These are strategic directions and prospective possibilities, not confirmed subscription terms or announced product specifications.
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Current consoles remain part of the plan
Sharma reportedly described reinvestment in the current Series X|S generation. That emphasis indicates that Xbox’s reset is not described solely as a move away from consoles; Windows Central frames current hardware as part of the business focus.
Game Pass flexibility is not yet a confirmed offer
The report hints at more flexible Game Pass choices, but does not define new tiers, prices, eligibility, or launch dates. Readers should treat flexibility as a potential direction, not as a change already available to subscribers.
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Helix remains a developing plan
Sharma reportedly called Xbox’s next generation “a family of devices,” while saying the console would come first and that details would follow as plans develop. The report does not establish specifications, release timing, or the form of that device family.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What Xbox’s stated ambition does—and does not—show
Windows Central quoted Sharma saying: “We exist to be where the world plays, we will know when we have a billion daily active people, and we have a right to win because we’re now focused on our fans and franchises.” The “billion daily active people” figure is an ambition, not a current Xbox user count. The report does not provide a timeline or a measurement plan for reaching it.
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How to interpret the report
- Attributed remarks: The “freefall” description and other town-hall statements are reported by Windows Central from a transcript it says was shared with the outlet and verified by trusted sources.
- Not an official public transcript: The reviewed coverage does not include a Microsoft-issued transcript, audio, or official confirmation of the wording.
- Limited growth claim: The report’s updated context limits the quoted return-to-growth statement to first-party games owned and published by Xbox.
- No quantified financial finding: The coverage does not provide a figure that measures the balance-sheet decline or establishes its causes.
Pure Xbox also recapped the town-hall story, but says its account relies on Windows Central’s transcript; it is a recap of the same reporting rather than an independent primary record. Pure Xbox’s recap
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