Microsoft CEO Says XBOX Streamlining Is ‘Great to See’
Microsoft CEO Satya Nadella has voiced strong support for Xbox’s ongoing restructuring, praising CEO Asha Sharma for leading what he described as a necessary “streamlining” of the business. Speaking during an interview, Nadella said he finds the current direction “great to see,” citing Xbox’s remaining portfolio of intellectual property and studios as reasons for optimism.
The comments come as Xbox undergoes its most significant overhaul in recent years, following extensive organizational changes. Earlier this year, Xbox cut 1,600 jobs, and more recently laid off an additional 268 employees—affecting multiple studios and franchises. The restructuring has included shuttering several first-party studios, including Double Fine Productions, Compulsion Games, and Undead Labs (developer of State of Decay), while Ninja Theory, known for Hellblade, is reportedly facing closure. The company has also transferred Obsidian Entertainment into Bethesda’s operations and handed development of the Halo franchise to Activision.
Asha Sharma, the relatively new Xbox CEO, has publicly defended the restructuring, stating that “great technology gets better when it gets simpler, not bigger.” This philosophy appears to be driving Microsoft’s strategic pivot away from its previous “everything everywhere” approach under previous leadership.
Nadella’s endorsement suggests Microsoft’s leadership views the painful reorganization as necessary for long-term sustainability, even as the gaming industry watches a major platform holder dramatically reduce its first-party development footprint. The changes represent a significant departure from Xbox’s expansion strategy of recent years.