Microsoft Chief Praises Xbox Overhaul While Seeking Sustainable Growth
Microsoft CEO Satya Nadella said in a podcast interview that Xbox's streamlining under CEO Asha Sharma was a positive development. His comments followed layoffs that affected hundreds of Xbox employees and major franchises such as Halo. Nadella also said Xbox must find a sustainable business model and aims to return to growth in the next fiscal year.
In a Sources podcast conversation with Alex Heath, Microsoft's Satya Nadella addressed Xbox's reset near the interview's end. He highlighted owned IP and the studio lineup as strengths, while calling the streamlining led by Xbox CEO Asha Sharma encouraging. This followed cuts touching hundreds of Xbox workers and franchises including Halo.
Reports also claimed Halo Studios retained roughly 20 developers after layoffs, and later coverage said Activision would oversee Halo going forward. Nadella said Xbox still needs a viable business model and aims to resume growth in the coming fiscal year.
The layoffs and restructuring could affect hundreds of Xbox employees and their families, while Halo fans may see the franchise's direction shift under Activision. If Xbox returns to growth, it may stabilize some teams; if not, further cuts could ripple through contractors, support studios, and local game communities. The outcome may shape how platform holders balance cost-cutting with creative output.