Nadella Backs Xbox Restructuring for Sustainable Growth

Microsoft CEO Satya Nadella has expressed confidence in the company's Xbox division, which is undergoing significant restructuring. The goal is to make Xbox both a strong publisher and platform provider across PC and Xbox consoles.

Nadella praised the streamlining efforts of gaming chief Asha Sharma, saying it was 'great to see', but noted that finding a sustainable business model to bring games to more people remains a challenge.

The restructuring has included thousands of planned role reductions, with approximately 3,200 roles eliminated throughout fiscal 2027. This includes about 1,600 immediate eliminations and four studios moving under new management.