Microsoft CEO Satya Nadella has commented on the recent wave of layoffs and studio restructuring at Xbox, describing the ongoing process as "great to see." The comments come after Xbox laid off an additional 268 employees, following an earlier reduction of 1,600 jobs. These changes have also involved merging studios, such as Obsidian into Bethesda, and reportedly preparing to close Ninja Theory.
In an interview with the Sources Podcast with Alex Heath, Nadella expressed confidence in Xbox's intellectual property and its ability to produce future games. "I feel fantastic about the IP we have right now," Nadella stated. "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."
When addressing the significant workforce reductions and organizational changes, Nadella referred to them as "streamlining." He remarked, "There's some amount of streamlining the team is doing, and Asha is doing, which is great to see." This follows statements from Xbox's Chief Creator Officer, Matt Booty, who indicated that the company is approximately three-quarters of the way through its restructuring.
Nadella further elaborated on Microsoft's long-term vision for Xbox, emphasizing the need to develop a sustainable business model. "Then we have to invent the right sustainable business model that allows us to deliver gaming to more and more people," he said. "That has always been the goal, which is, we want to be a great publisher and a great platform provider to games across both PC and Xboxes."
He concluded by expressing optimism for Xbox's financial performance, stating, "And I think Asha and the team have said that Xbox is going to get growth in the next fiscal year."