Yesterday, Xbox CEO Asha Sharma spoke to Microsoft employees in a big Town Hall meeting, covering a variety of topics.
Xbox's gaming org has undergone vast restructuring this summer leading to thousands of job cuts via layoffs and divestitures. The reorg is designed to reduce costs and shift as much of its business as possible out from underneath Microsoft U.S. corporate structure. More of Microsoft's game studios have been moved under purpose-built publishers like Activision and Bethesda, as the AI buildout continues to dominate Microsoft U.S. overall bureaucracy and legal apparatus.
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Xbox stated recently that its restructure is "75% complete," with staffers still wondering what additional layoffs might be on the table. But for now, Asha Sharma took to the internal airwaves to give Xbox staffers an update on what to expect in the coming months from Xbox's overall plan. The quotes below were transcribed to us and verified with multiple sources.
Xbox's big plans for PC and gaming in general: easier publishing, and a Battle.net boost
Sharma spoke on a range of topics at the event, some of which we covered yesterday which you can read up on here. There, Xbox's Asha Sharma spoke on the need to strengthen Xbox's core user base: console users, with plans to boost Xbox Series X|S and the next-gen Xbox Helix "family of devices." But today, I'd like to highlight her comments on Xbox PC and its future, which includes boosted publishing powers for developers, more support for Battle.net, and more.
"On PC historically, we've taken a one-shot approach. We've had one app, and that's what we've focused on. As we have dug in, we're leaving a lot on the table," Sharma said. "It turns out that Battle.net supports an audience that we're not reaching outside of it, and it is awesome at it. The retention is nearly as good as Steam's retention, and we've never really put any work behind it as a platform. And so, we are doing that. We are doing it the right way for that community. It'll be great for our first-party games, and great for select third-party games too."
Indeed, Battle.net recently picked up its first third-party game in the form of The Witcher 3. Activision previously experimented with Battle.net, putting Call of Duty and Tony Hawk's Pro Skater up on the service, and Xbox chimed in with DOOM and Avowed, among others. Blizzard seems to be taking a more curated approach to content on Battle.net, as opposed to opening the flood gates Steam or Xbox PC-style. Retention refers to return users, and not necessarily total users. Sharma is saying that once they're in the ecosystem, Battle.net users stick around at a rate almost as good as Steam.
It'll be interesting to see what publishers show up there next in any case. I could see Battle.net focusing more on AAA type stuff, but it also seems to be designed to help Xbox boost Xbox Play Anywhere. Indeed, The Witcher 3 is now Xbox Play Anywhere on Xbox Series X|S consoles and cloud as a result of this partnership, even if you grab it via Battle.net on PC.
None of this means Xbox plans to ditch Steam, though.
"We will continue to invest in other PC apps as long as they reach distinct audiences," Sharma emphasized. "The Windows app [Microsoft Store] reaches a lot of people around the world. In fact, in China, it is the number one store," Sharma said, although it's unclear by what metric they're measuring this. It's true that Fortnite, Roblox, and some other major service-type games are available on the Windows Microsoft Store, and not on Steam. I'm told many users in China access Steam via a VPN, which probably clouds some of these figures.
"We're collaborating across the board," Sharma said, "we're doing a lot this fall [in terms of offers] through OEMs. We have an offer going out to 14 million OEMs. I saw some great pre-install work that's happening for [World of Warcraft], and some great conversion numbers. We will continue to succeed on Windows. There are a billion Windows PCs. There's no reason we shouldn't be serving our audiences there."
OEMs refers to companies that build and ship Windows-based devices. It sounds to me like Sharma and Xbox are working to bundle other content with upcoming laptop launches. Many laptops come with PC Game Pass codes these days, for example, and it sounds like World of Warcraft may come with launchers and gametime pre-installed on some devices to celebrate the launch of WoW: Forever and further boost Battle.net in general.
Finally, Sharma spoke about making it easier to "work with Xbox," echoing complaints I've heard from developers big and small about building games for the Xbox ecosystem.
"Right now, it is simply very hard to work with Xbox," Sharma admitted. "So, we are simplifying the targets, we're moving to a headless partner center, we're taking the cruft out of our APIs, and we're making them machine-readable. There's a lot of work here. We need developers to be able to work with us, understand how they are performing, and have tools that actually grow their business. There's a lot we can do here. I'm encouraged by the work happening."
The idea here is to make Xbox's publishing programs as simple and automated as possible, reducing the need for human-intervention and bottlenecks. You might notice on Metacritic that PS5 and Steam reviews of games often vastly outstrip their Xbox counterparts. One reason for this is that developers' games often seem stuck in certification until the last minute on Xbox, with reviewers and content creators opting for PS5 and Steam versions as codes usually come in much earlier there.
More problematically, Microsoft's publishing requirements often just see indie developers rejected without providing any clear reasoning, despite obtaining clearance on Steam and PS5. It's often only when the Xbox community gets involved and makes noise that some publishers get their work cleared through cert, which is absolutely stupid. It sounds like there's an effort to fix this, thankfully.
PC gaming is a huge opportunity for Xbox, both on and off Steam
Microsoft's core focus is rebuilding its Xbox Series X|S console business ahead of the Xbox Helix launch, but it's encouraging to see they're not abandoning efforts to strengthen their PC offering.
In years past, Microsoft earned itself a reputation of hostility among PC players, with services like Games for Windows Live remaining notorious to this day. As of 2026, Xbox's offering on PC is far far better. The Xbox PC app is in a much better place (although could still be better), the Xbox Ally X handheld is a fantastic console companion for Xbox Play Anywhere fans. And perhaps ironically, Microsoft's disc-to-digital program on Xbox consoles is offering a way to acquire physical PC games for the first time in years, strangely.
Microsoft still has a way to go on building trust with PC gamers for sure. I would argue having more open dialogue with the community there and having a more public, prominent feedback program similar to what we've seen on Xbox Series X|S would help. PC Game Pass is still a very strong offering, and Battle.net is arguably the best of the publisher-focused launchers, vastly outstripping stuff like Ubisoft Connect and EA Play.
PC gaming is a very different culture to console gaming, and arguably more competitive. Steam is absolutely beloved, and outside of that, we have an arrangement of publisher-focused launchers like the Riot Client and HoYoverse launchers. Xbox PC still needs a lot of work on the performance side, especially on handhelds, and the integrations with external launchers like Battle.net itself aren't always the best. But as an Xbox-first, Xbox PC-second gamer, I've been encouraged by the work here. I'd love to see Xbox boost publisher relationships and discoverability for indie games, improve the search functionality on Xbox PC, and also streamline processes for getting Xbox Play Anywhere functional.
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