Nadella Backs Xbox Restructuring Amid Layoffs and Hardware Struggles

Microsoft CEO Satya Nadella expressed confidence in Xbox's restructuring efforts following significant layoffs. The reorganization, which began in July with 1,600 job cuts, has led to a substantial reduction in staff at Halo Studios and World's Edge.

Nadella stated that he feels 'fantastic about the IP we have right now' and praised the streamlining of the team, calling it 'great to see'. Xbox CEO Asha Sharma aims to reset the division and achieve growth this fiscal year.

However, Xbox faces challenges in declining hardware revenue, memory shortages, and price hikes. The company is pinning its hopes on exclusive titles like Gears of War: E-Day and Clockwork Revolution, as well as third-party games such as Call of Duty: Modern Warfare 4.