Xbox aims to out-profit PlayStation and Nintendo by 2030
The ambition driving the Xbox empire isn’t just about selling games; it’s about rewriting the rules of the industry. CEO Asha Sharma has set an audacious target: to make Xbox more lucrative than its biggest rivals, Sony and Nintendo, by mid-2030.
This isn’t just a lofty corporate slogan; it’s backed by a sweeping strategy aimed at long-term dominance. Sharma envisions a future where Xbox is a powerhouse across the entire entertainment spectrum, building franchises not just in gaming but across film, television, consumer products, live experiences, and global partnerships, including expansion into China.
To fuel this vision, the strategy involves heavy investment in beloved properties, notably Minecraft, alongside focusing on expanding the casual games market. The financial roadmap anticipates that revenue growth will accelerate significantly in the 2028 and 2029 fiscal years, aiming for sustained double-digit growth in players and engagement.
However, the road to this future is anything but smooth. Despite the ambitious plans, the division is currently navigating a challenging landscape. Recent tracking data reveals a difficult period for hardware sales; US Xbox Series hardware sales fell by 27% year-over-year in September 2026, hitting a new low. Furthermore, the company has faced financial headwinds, including increased console prices, making hardware more expensive than at launch.
The strategy pivot has required some painful adjustments. Since Sharma took the helm, Xbox has undergone a significant “reset” phase, involving the elimination of over 1,600 jobs and the cutting of several studios from the portfolio. This period has included a quarterly revenue decline of 10%, putting pressure on the ambitious growth targets.
The competition, meanwhile, continues to set high benchmarks. Meanwhile, rivals like Sony have managed to achieve a strong operating margin of 9.9% from their game and network services, and Nintendo remains highly profitable, approaching a 16% operating margin.
To counteract these challenges and redefine its market position, Xbox is leaning heavily into multimedia innovation. A major component of this strategy is the new XP division, dedicated to film, television, and live events. This initiative is already generating buzz with exciting multimedia projects, including the third season of the Fallout TV series, a major Call of Duty movie, and an upcoming Diablo animated series. The vision extends even further, with plans to open a Minecraft theme park by 2027.
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