Xbox Undergoes Radical Restructuring Amid Search for Sustainable Business Model

Microsoft's Xbox division is undergoing significant changes under new head Asha Sharma. In an effort to develop a sustainable business model, substantial job losses and potential studio shutdowns have occurred.

Satya Nadella, Microsoft's CEO, expressed optimism about the company's future in gaming, pointing to ongoing streamlining efforts led by Asha and her team.

Nadella emphasized the importance of a proper business model for Xbox, enabling broader dissemination of its games across PCs and consoles. He noted that with their creative assets and intellectual property, he is 'very optimistic' about future gaming production capabilities.

The company's downsizing efforts have included reducing its workforce by 3,200 employees, with half of those cuts implemented immediately. Five studios are being divested, and the division has undergone restructuring, transitioning franchises like Halo to Activision.