Microsoft CEO Satya Nadella has commented on the recent wave of layoffs and studio closures within the company's gaming division, characterizing the actions as "great to see" and a necessary part of streamlining efforts led by Xbox CEO Asha Sharma. These comments come in the wake of significant workforce reductions over the summer and more recent cuts this week.
Despite the challenges, Nadella expressed confidence in Xbox's future, stating he feels "fantastic about the IP we have right now" and the potential for future game development. He emphasized the need to "invent the right sustainable business model" to broaden gaming's reach.
During an appearance on the Sources Podcast, Nadella also addressed the global disparity in public perception of artificial intelligence, questioning why Western consumers exhibit more skepticism compared to those in other regions, such as Nigeria. He suggested that the industry needs to "earn the trust" and clearly demonstrate the benefits of AI to consumers, businesses, and communities to foster greater acceptance.
These remarks from Nadella follow criticism from figures like Ed Zitron, who has attributed Xbox's current struggles to "catastrophic mismanagement" and unsuccessful AI ventures by Microsoft. Reports indicate that further job cuts may still be on the horizon for Xbox.