Microsoft CEO Satya Nadella has praised Xbox’s ongoing “streamlining” under Xbox CEO Asha Sharma just days after another round of layoffs hit the division.
Speaking on the Sources podcast with Alex Heath, Nadella was asked about Xbox’s ongoing overhaul and the state of the brand and said he felt “fantastic”.
Satya Nadella on Copilot, the AI backlash, and Microsoft’s future“I feel fantastic about the IP we have right now,” Nadella said (as transcribed by IG). “If I look at the studios, the IP portfolio we have, and our ability to then take that and produce great games going forward – I feel fantastic. There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see.”
He continued: “And then we have to invent the right sustainable business model that allows us to deliver gaming to more and more people. That has always been the goal, which is we want to be a great publisher and a great platform provider for games across both PCs and Xboxes.
“So that is sort of our goal, and I think Asha and the team have said that Xbox is going to get back to growth this next fiscal year, and that’s the plan they’re executing on, and in that process, do a bang-up job of producing some great games.”
Nadella’s comments followed rumours of more immiment job cuts at Xbox that were later confirmed as another 268 layoffs and what appears to be the impending closure of British studio Ninja Theory, as well as organisational changes as Obsidian moves under Bethesda’s control, Playground and Turn 10 merge, Undead Labs goes independent, and Rare, World’s Edge, and Halo move under Activision’s control. So far, it’s emerged that Undead Labs has also suffered major layoffs as a result, as well as Age of Empires and Mythology developer World’s Edge.
In July, Xbox CEO Asha Sharma announced job cuts affecting 3,200 employees as part of what she called the “most significant” restructuring the company had ever undertaken. 1,600 of those layoffs were effective immediately, while some first-party studios, including Double Fine and Compulsion Games, were permitted to go independent again.
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