Microsoft CEO Satya Nadella has commented on the recent restructuring within Xbox, describing the ongoing "streamlining" efforts as "great to see." The remarks come in the wake of multiple waves of layoffs impacting thousands of employees across Xbox and its associated studios.
In a recent interview on the Sources Podcast with Alex Heath, Nadella expressed optimism about Xbox's intellectual property and its capacity for future game development. This positive outlook persists despite significant changes, including the 1,600 job cuts announced in July and further structural adjustments made in the past week.
"There's a certain amount of streamlining the team is doing and [Xbox CEO Asha Sharma] is doing, which is great to see," Nadella stated, referencing the recent workforce reductions. He emphasized the company's commitment to developing a sustainable business model that expands access to gaming across PCs and Xbox consoles, reiterating that this has "always been the goal."
Nadella added that Asha Sharma and the Xbox team are executing a plan to return the division to growth in the next fiscal year. He expressed confidence in their ability to "do a bang-up job of producing some great games" as part of this initiative.
The CEO's comments follow a period of significant upheaval for Xbox, which has seen studios like Double Fine and Ninja Theory impacted by layoffs, and internal reorganizations at studios such as id Software. The decision to move the Halo franchise from Halo Studios to Activision teams also signals a new strategic direction for the brand.
Beyond the direct layoffs, the company's restructuring has led to changes like the Fallout: New Vegas team at Obsidian Entertainment moving under Bethesda. Additionally, Undead Labs, the developer of the State of Decay series, confirmed its independence from Xbox shortly after facing its own "significant" layoffs, though the studio stated that State of Decay 3 remains in active development.