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Microsoft CEO Satya Nadella described the ongoing restructuring at Xbox as ‘great to see’, even as the gaming division continues to cut jobs and reorganize its studios.
Speaking to journalist Alex Heath on the Sources podcast, Nadella said he remained confident about Xbox’s games portfolio and its ability to deliver major titles in the future. His comments came shortly after Xbox announced another 268 job cuts as part of its ongoing business reset.
Nadella said he felt ‘fantastic’ about the intellectual property Microsoft currently owns and the studios operating across its gaming business.
“I feel fantastic about the IP we have right now,” Nadella said during the interview. He added that Microsoft has a strong portfolio of studios and intellectual property, along with the ability to use those assets to produce games in the future.
The Microsoft CEO also addressed the restructuring underway under Xbox CEO Asha Sharma.
“There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see,” Nadella said.
The remark came as Xbox continued implementing a previously announced restructuring plan affecting thousands of employees.
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On September 22, Xbox confirmed it would eliminate 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios’ management and central functions.
According to Xbox Chief Content Officer Matt Booty, the actions completed since July, including studio divestitures, took the company roughly three-quarters of the way through the previously announced restructuring.
The latest changes also affect major Xbox franchises and studios. Activision will develop the next Halo title through a new purpose-built team separate from its Call of Duty teams. Playground Games and Turn 10 Studios are also being combined into one studio working on the Forza and Fable franchises.
Nadella said Microsoft still needs to develop “the right sustainable business model” to deliver gaming to more people.
He said Microsoft’s goal is to operate as both a major game publisher and a platform provider across PC and Xbox. Nadella also expressed confidence in Xbox’s future growth, while the company continues reshaping its gaming operations and studio structure.
