Microsoft CEO Satya Nadella has expressed confidence in Xbox’s current trajectory under its CEO Asha Sharma, shortly after the gaming division announced further workforce reductions. Despite these changes, Nadella emphasised the strength of Xbox’s intellectual property and its studios as he discussed future plans on the Sources podcast.
Restructuring Amid Layoffs
In recent developments, Xbox has experienced a new round of layoffs, with 268 positions cut, raising concerns about the restructuring efforts under Sharma’s leadership. Rumours suggest possible closures and significant organisational shifts, such as the iconic British studio Ninja Theory facing potential shutdown, while other groups like Obsidian have moved under Bethesda’s control. Mergers and spin-offs have also occurred, with Playground and Turn 10 combining, Undead Labs becoming independent, and studios like Rare, World’s Edge, and Halo joining Activision’s fold.
Future Growth and Strategic Goals
Nadella praised the strategic moves and highlighted the need for a sustainable business model to expand gaming’s accessibility across PCs and Xbox consoles. According to him, Sharma and her team aim to see Xbox return to growth in the next fiscal year by continuing to deliver excellent games and enhance their position as a leading publisher and platform provider.
Significant Overhaul
These comments come in the wake of major changes announced in July when Sharma revealed a round of job cuts impacting 3,200 employees. She dubbed this restructuring the most significant in Xbox’s history, noting that half of the layoffs took immediate effect. Some first-party studios like Double Fine and Compulsion Games have been allowed to reestablish their independence as part of these extensive reorganisation efforts.
Reporting based on coverage first published by eurogamer.net.