Nadella Sees Xbox Comeback Amid Major Layoffs and Restructuring

Microsoft's Xbox division is undergoing significant changes under new leadership, but CEO Satya Nadella remains optimistic about its future. In an interview on the Sources Podcast with Alex Heath, Nadella praised the current gaming IP and the streamlining efforts led by Asha Sharma, the CEO of Xbox.

'I feel fantastic about the IP we have,' Nadella stated, highlighting Microsoft's goal to broaden its gaming reach and become a leading platform provider for games across PCs and Xbox consoles.

The company has been undergoing major restructuring and layoffs, with approximately 4,800 positions eliminated as part of a broader effort. Within Xbox, CEO Asha Sharma said the company planned to reduce its workforce by about 3,200 employees during fiscal 2027, including around 1,600 immediate job cuts.

Nadella expects Xbox to see a resurgence in the coming fiscal year under Sharma's leadership, citing the production of 'great games' as part of their plan. He also highlighted Microsoft's aim to excel both as a publisher and a platform provider.