Nadella Orders Xbox to Find Sustainable Business Model

Microsoft CEO Satya Nadella says the company's Xbox division needs to invent a sustainable business model to reach more people with its games.

Nadella spoke on the Sources Podcast, praising the 'streamlining' enacted by new Xbox chief Asha Sharma, which has resulted in thousands of job losses and studio closures.

He believes Xbox will return to growth in the coming fiscal year (2027/28) and is confident in the company's IP portfolio and ability to produce great games.

Nadella acknowledged that the streamlining process was 'great to see', but emphasized the need for a sustainable business model.