Inside the return of Xbox

Two weeks ago there was a buzz in the air inside Microsoft's studio D building. Hundreds of Xbox employees gathered early on a Thursday morning, packed into the hallways and atrium, to hear from Xbox CEO Asha Sharma. The "return of Xbox" slogan was plastered all over the walls of the building, the same message Sharma first delivered to Xbox employees in February. It was time for Sharma to rally the troops, after two years of turbulence, and hint at the future of Xbox.

During the roughly 40-minute all-hands...