Microsoft CEO praises Xbox 'streamlining' amid layoffs
Microsoft CEO Satya Nadella has expressed support for the ongoing restructuring within the Xbox division. Despite recent waves of layoffs, Nadella described the "streamlining" efforts led by CEO Asha Sharma as something "great to see."
Speaking on the Sources podcast with Alex Heath, Nadella shared his optimism regarding the brand's direction. He stated that he feels "fantastic" about the current IP portfolio and the studios' ability to produce great games moving forward. He specifically highlighted the restructuring work being executed by Asha Sharma and her team as a positive development.
The long-term goal, according to Nadella, is to establish a sustainable business model that expands gaming access. Microsoft aims to excel as both a publisher and a platform provider for both PC and Xbox consoles. He noted that the current plan focuses on returning the division to growth in the upcoming fiscal year while maintaining a high standard of game production.
These comments follow a period of significant organizational shifts and workforce reductions. In July, Asha Sharma announced the layoff of 3,200 employees as part of a major restructuring, which included some studios like Double Fine and Compulsion Games being allowed to operate independently again. Recent reports have also detailed shifts in studio management, including Obsidian moving under Bethesda, and Rare, World's Edge, and Halo moving under Activision control. Additionally, layoffs have reportedly affected staff at Undead Labs and World's Edge.
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