Asha Sharma Insists There’s ‘More Demand Than Consoles Available’ as Xbox Hardware Sales Continue to Plummet
AI-summarised brief · reviewed before publication
Xbox chief Asha Sharma told investors that the console’s weak hardware sales are a supply‑side issue, not a lack of demand, as Microsoft posted its FY27 Q1 results. Revenue from the Xbox division fell 2% year‑on‑year to $5.379 billion, with hardware sales down 14% and content and services revenue slipping 2% and 1% respectively in constant currency. The decline follows a 10% hardware drop the prior quarter, despite a “reset” of the gaming business that included staff cuts and studio closures. Sharma highlighted an improved “accountability margin” and noted that PC revenue grew double‑digits, while major titles such as Gears of War: E‑Day, Call of Duty: Modern Warfare 4, World of Warcraft: Forever and the upcoming GTA 6 are slated to boost Q2 results. She said Microsoft is expanding a console refurbishment program to address the shortage, which has been exacerbated by component scarcity driven by AI‑related demand.
💡 Why It Matters
- · The shortage threatens Microsoft’s ability to capitalize on blockbuster releases, putting its console comeback at risk despite a healthier profit margin.
