Xbox Restructuring Underway as Nadella Expressed Optimism

Microsoft's Xbox business is undergoing significant restructuring under new CEO Asha Sharma, who aims to return the division to growth by focusing on its biggest games and exploring new business models. Speaking in a podcast interview, Satya Nadella expressed optimism about the future of Xbox, citing the remaining roster of studios and IPs as 'fantastic'. He welcomed recent streamlining efforts within the business.

Nadella's comments come after widespread layoffs and cuts were announced by Microsoft this summer. The first wave affected 1,600 jobs, with another 1,600 planned for completion by the end of the fiscal year. A second round of cuts has recently been implemented, with around 75% of the targeted job reductions already complete.

The restructuring efforts have seen some high-profile studios impacted, including Halo Studios and Rare, which developed Sea of Thieves. Other studios have also undergone redeployment or closure, such as Obsidian, Ninja Theory, Double Fine, Compulsion Games, and Undead Labs. Arkane, the developer behind Marvel's Blade and Dishonored, remains for sale.