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Nadella Backs Xbox CEO’s Streamlining and Says He ‘Feels Fantastic’ About Studios

Microsoft says it will keep making and hosting games as it reshapes Xbox to find a sustainable path back to growth.

Overview

  • Microsoft CEO Satya Nadella publicly praised Xbox CEO Asha Sharma’s recent streamlining and said he “feels fantastic” about the company’s studios and owned franchises.
  • Nadella reiterated that Microsoft intends to remain both a games publisher and a platform provider for PCs and Xbox consoles rather than abandon the platform side.
  • The Xbox unit is undergoing a large corporate reset that has already included widespread layoffs and studio reshuffles, with reporting that more cuts are planned.
  • Leadership says the reorganization is meant to create a sustainable business model and to return Xbox to revenue growth in the next fiscal year.
  • Critics note the scale of job cuts and question ambitious audience targets and growth claims given weak console sales and existing user metrics.