Microsoft CEO says Xbox ‘streamlining’ is ‘great to see’ despite cuts and layoffs
Microsoft CEO Satya Nadella has praised Xbox’s ongoing “streamlining” under Xbox CEO Asha Sharma, just days after a new round of layoffs hit the division.
Speaking on the Sources podcast with Alex Heath, Nadella was asked about Xbox’s ongoing overhaul and the state of the brand and said it felt “fantastic”.
“I feel fantastic about the intellectual property we have right now,” Nadella said (as transcribed by IG). “If I look at the studios, the IP portfolio that we have and our ability to take that into account and produce great games in the future, I feel fantastic. The team is streamlining, and Asha is doing it, which is great to see.”
He continued: “And then we have to invent the right sustainable business model that allows us to bring games to more and more people. That’s always been the goal, which is we want to be a great publisher and a great platform provider for PC and Xbox gaming.
“So that’s kind of our goal, and I think Asha and the team have said that Xbox is going to get back to growth in the next fiscal year, and that’s the plan that they’re executing on and, in the process, doing an outstanding job of producing great games.”
Nadella’s comments follow rumors of further impending job cuts at Xbox which were later confirmed by 268 additional layoffs and what appears to be the imminent closure of UK studio Ninja Theory, as well as organizational changes as Obsidian comes under Bethesda’s control, Playground and Turn 10 merge, Undead Labs becomes independent and Rare, World’s Edge and Halo come under Activision control. So far, it has emerged that Undead Labs has also suffered major layoffs, as has Age of Empires and Mythology developer World’s Edge.
In July, Xbox CEO Asha Sharma announced job cuts affecting 3,200 employees in what she called the “most significant” restructuring the company has ever undertaken. 1,600 of these layoffs took effect immediately, while some first-party studios, including Double Fine and Compulsion Games, were allowed to become independent again.
Gn tech