A profile of Xbox CEO Asha Sharma; sources: Xbox plans a major Game Pass overhaul, a next-gen handheld device by late 2027, and next-gen console by late 2028

Xbox is launching a handheld device in 2027 and a new console in 2028, changing the hardware landscape for gamers.

Xbox CEO Asha Sharma, a non-gamer executive appointed in February, is implementing a significant overhaul of Microsoft's gaming division. Sharma has initiated widespread layoffs, consolidated studios, and is reportedly planning a major restructuring of the Game Pass subscription service to offer features à la carte on a tiered system. Sources indicate Xbox is also developing a next-generation handheld gaming device slated for release by the 2027 holiday season, followed by a new console by late 2028. These moves come as Xbox faces declining market share and financial challenges, with Sharma aiming to improve the brand's economic performance and player experience. Her strategy reportedly focuses on hardware, key franchises, and updating the tech stack, with the ultimate goal of becoming the leading entertainment company.

The proposed overhaul of Game Pass, shifting from a bundled service to an à la carte, tiered model, suggests a strategic pivot to increase revenue flexibility and cater to diverse player preferences. This move could redefine subscription value and potentially fragment the existing subscriber base, forcing consumers to make more specific choices about their gaming access. It signals a departure from the all-inclusive model and points towards a more personalized, perhaps more expensive, future for accessing Xbox content.

The development of both a handheld device by late 2027 and a new console by late 2028 indicates a significant, multi-year investment in future hardware ecosystems. This dual hardware strategy suggests Xbox aims to compete across multiple form factors, potentially challenging Nintendo's portable dominance and Sony's console leadership simultaneously. Such ambitious hardware roadmaps signal a renewed commitment to core Xbox gaming, regardless of potential strategic shifts at the corporate level concerning the division's long-term structure.