Microsoft CEO Satya Nadella has commented on the ongoing restructuring within Xbox, characterizing the significant layoffs as a positive step under the new leadership of CEO Asha Sharma. The corporate reset has involved substantial workforce reductions, divestment from studios, and the reorganization of game franchises, including the notable move of Halo under Activision.
Nadella stated in a recent podcast appearance that he feels "fantastic" about the intellectual property and studio portfolio currently held by Xbox. However, he also indicated a desire for improved financial performance from the division. "I feel fantastic about the IP we have right now," Nadella said. "If I look at the studios, the IP portfolio we have, and our ability to then produce great games going forward, I feel fantastic."
Regarding the layoffs, which have affected over 1,600 Xbox employees this year with plans for further reductions, Nadella offered a pragmatic perspective. "There's some amount of streamlining the team is doing, and Asha is doing, which is great to see," he commented. He emphasized the need to "invent the right sustainable business model that allows us to deliver gaming to more and more people," reiterating the goal to be a leading publisher and platform provider across PC and Xbox.
Nadella expressed confidence that Sharma and her team are on track to achieve growth in the upcoming fiscal year and are focused on delivering high-quality games. This strategy is set against Sharma's ambitious objective for Xbox to eventually entertain over a billion people daily. Despite Xbox not publicly disclosing console sales figures, the company reported 500 million monthly active users across its consoles, mobile, cloud, and PC platforms in 2025. The current plan involves reaching a broader audience with fewer studios and developers, a strategy Nadella believes will prove successful.