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Xbox Targets #1, Cuts Pass, Defends $69B Deal

6/7/2026

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Summary

Sharma Drives Xbox Growth

Xbox CEO Asha Sharma said Xbox will aim to be the number-one gaming and entertainment company by 2030.
She cut Game Pass prices, ending an eight-month decline and boosting subscriber retention.
Q3 results showed a 33% drop in Xbox hardware sales, which Sharma linked to memory costs rising 2.75 times.
She defended the $69 billion Activision Blizzard King acquisition, noting Call of Duty generates more revenue than the Marvel Cinematic Universe.

Summary

Sharma Weighs Exclusives

Sharma said Xbox is weighing exclusive titles while still acting as a global publisher.
Forza Horizon 6 and Halo: Campaign Evolved will still launch on PlayStation 5 in 2026, showing no pullback.
Sharma clarified Xbox need not meet Microsoft’s 30 percent margin goal, aiming to be the top gaming brand.
Analysts warned a Call of Duty exclusive could cost Xbox up to $2 billion annually.

History

Historical Context

Microsoft announced on Jan 18 2022 its intent to buy Activision Blizzard for $68.7 billion and closed the deal on Oct 13 2023 for $75.4 billion, creating the largest video-game acquisition ever. The European Commission and other antitrust bodies examined the merger over fears it could limit access to franchises such as Call of Duty, a concern echoed by Sony.

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Sharma Drives Xbox Growth

Xbox CEO Asha Sharma said Xbox will aim to be the number-one gaming and entertainment company by 2030.
She cut Game Pass prices, ending an eight-month decline and boosting subscriber retention.
Q3 results showed a 33% drop in Xbox hardware sales, which Sharma linked to memory costs rising 2.75 times.
She defended the $69 billion Activision Blizzard King acquisition, noting Call of Duty generates more revenue than the Marvel Cinematic Universe.

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