Microsoft CEO Satya Nadella characterized the ongoing reorganization at Xbox as “great to see,” despite ongoing layoffs and studio restructuring within the gaming division.
During an appearance on journalist Alex Heath’s Sources podcast, Nadella expressed strong confidence in the Xbox game lineup and the division’s capacity to release major titles down the line. His remarks followed an announcement that Xbox was eliminating another 268 positions as part of an ongoing business overhaul.
Nadella Praises Xbox Gaming Portfolio
Nadella noted that he feels “fantastic” regarding the intellectual property currently owned by Microsoft and the various studios under its gaming umbrella.
“I feel fantastic about the IP we have right now,” Nadella stated during the podcast discussion, further mentioning that the company boasts a robust collection of intellectual property and studios, coupled with the capability to leverage these assets for future game development.
The Microsoft chief executive additionally touched upon the operational changes being managed by Xbox CEO Asha Sharma.
“There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see,” Nadella remarked.
This observation was made while Xbox pushed forward with a previously disclosed reorganization strategy impacting thousands of workers.
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Xbox Cuts 268 Jobs in Latest Restructuring
On September 22, Xbox confirmed it would eliminate 268 roles distributed across Halo Studios, additional first-party developers, and the central management and functions of Xbox Game Studios.
Matt Booty, Xbox Chief Content Officer, stated that the measures enacted since July—which included studio divestitures—have brought the company approximately 75 percent through its previously announced overhaul.
These recent modifications additionally impact prominent Xbox franchises and developers. A dedicated, newly formed team at Activision—operating independently from the Call of Duty groups—will handle the development of the next Halo installment. Meanwhile, Turn 10 Studios and Playground Games are merging into a single organization dedicated to the Fable and Forza franchises.
Nadella Focuses on Sustainable Gaming Business
According to Nadella, Microsoft must still establish “the right sustainable business model” in order to bring video games to a broader audience.
He emphasized that Microsoft aims to function simultaneously as a leading game publisher and a platform provider spanning both PC and Xbox. Nadella reiterated his optimism regarding future growth for Xbox amidst the ongoing transformation of its gaming division and studio layout.
