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Xbox 'Streamlining' Is 'Great to See,' Microsoft CEO Satya Nadella Says

Nadella said the company has 268 more cuts and multiple studio transfers as Xbox aims to return to growth next fiscal year.

  • Microsoft CEO Satya Nadella praised Xbox's ongoing "streamlining" under Xbox CEO Asha Sharma, saying he feels "fantastic" about the brand's IP portfolio and its ability to produce great games.
  • Nadella's comments follow a July restructuring where Sharma announced 3,200 job cuts affecting Xbox, with 1,600 effective immediately and an additional 268 layoffs confirmed this past week amid significant organizational changes.
  • The restructuring includes the impending closure of British studio Ninja Theory and organizational shifts as Obsidian Entertainment moves under Bethesda's control, while Undead Labs gains independence and Rare, World's Edge, and Halo move under Activision's control.
  • Nadella emphasized the company's goal is functioning as a great publisher and platform provider across PCs and Xboxes, with Sharma planning to return to growth next fiscal year through a sustainable business model.
  • Despite the organizational changes, State of Decay developer Undead Labs confirmed its third game remains in active development, with studio head Philip Holt describing the effort as continuing amid "significant" layoffs.
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17 Articles

With Xbox, jobs are dropped again and several studios get new bosses. Microsoft boss Satya Nadela still sounds amazingly satisfied with the course of the division.

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indiekings.com broke the news on Saturday, September 26, 2026.
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