Xbox Faces Cuts as Leadership Resets Division
Satya Nadella said Xbox must monetize games better as Microsoft weighs new business models after losing millions of Game Pass subscribers.
- Xbox CEO Asha Sharma announced a strategic 'reset' of the gaming division to build a sustainable business, as Microsoft CEO Satya Nadella expressed impatience with current profit margins and the need to innovate economically.
- Microsoft has invested over $80 billion in Xbox over the last decade, yet accountability margins remain only 3 percent; annual revenue declined by nearly $500 million, prompting the leadership overhaul.
- A 'hardware component crisis' driven by AI demand is inflating costs and limiting console supply, which Sharma and Xbox Chief Content Officer Matt Booty cited as forcing a reevaluation of past operational choices.
- Citing anonymous sources, Bloomberg reported Wednesday that Xbox plans major job cuts in early July following Microsoft's June 30 fiscal year end, though the internal memo did not officially detail specific measures.
- Nadella noted 'there's more monetization of Xbox games happening on YouTube' than at Microsoft, emphasizing the division must innovate in hardware and games to ensure long-term sustainability and capture more value.
13 Articles
13 Articles
Satya Nadella Says 'There's More Monetization of Xbox Games Happening on YouTube Than at Microsoft' in CEO's First Comments Since Asha Sharma's 'Reset' Memo
Microsoft CEO Satya Nadella said he believes "there's more monetization of Xbox games happening on YouTube" than at its own company, following Xbox boss Asha Sharma's recent commitment to "reset" the gaming branch.Nadella commented on the state of Xbox in 2026 during a recent conversation with Hard Fork. When asked about Sharma's memo, which saw her outline a plan for the next 100 days amid a tumultuous time for the company, he said the current …
Microsoft CEO: We Have to Turn Xbox Into a Suitable Business, Claims More Monetization of Xbox Games Happening at YouTube Than at MS
Having trouble viewing the text? You can always read the original article here: Microsoft CEO: We Have to Turn Xbox Into a Suitable Business, Claims More Monetization of Xbox Games Happening at YouTube Than at MS It’s been a very busy month for Xbox and Microsoft, as the recent Xbox Games Showcase confirmed that Xbox is seeking to make some of its first-party games exclusive once more. Not only that, but recently-minted Xbox division CEO Asha Sh…
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