Satya Nadella, the CEO of Microsoft, emphasized the need for the Xbox division to create a sustainable business model to expand its reach in the gaming industry.
During an interview on the Sources Podcast, Nadella praised the significant restructuring efforts led by new Xbox chief Asha Sharma. Despite the resulting job cuts and studio closures, Nadella expressed optimism about Xbox’s future growth in the upcoming fiscal year (2027/28).
Nadella highlighted the potential of the company’s studios, IP portfolio, and the team’s ability to develop outstanding games. He acknowledged the ongoing streamlining efforts under Sharma’s leadership and stressed the importance of developing a business model that can broaden access to gaming for a larger audience.
The ultimate goal, according to Nadella, is for Microsoft to excel as both a game publisher and a platform provider for PC and Xbox users. He reiterated Sharma’s commitment to driving Xbox back to growth in the next fiscal year while focusing on delivering exceptional gaming experiences.
Xbox recently announced workforce reductions and studio divestments, including laying off 3,200 employees and transferring ownership of certain studios. Despite challenges such as failed agreements with Ninja Theory, Xbox remains dedicated to exploring alternative solutions while undergoing consultations with affected employees.