Microsoft CEO Satisfied with Xbox Restructuring Following 1600 Layoffs

Microsoft CEO Satya Nadella has described the “optimization” of Xbox following mass layoffs as “great,” stating that the next step is to build a sustainable business model to attract more players.

The Xbox restructuring began in July with the layoff of 1,600 employees and resulted in downsizing at Halo Studios, World’s Edge, and other structural changes within the division. Nadella stated that he views Microsoft’s current portfolio of studios and franchises “fantastically.”

Speaking about the Xbox reorganization under Asha Sharma’s leadership, he noted:

There is a certain amount of optimization that the team and Asha are doing, and that is great.

The next step, according to him, should be to create “the right sustainable business model that allows us to deliver games to more and more people.”

We want to be a great publisher and a great platform for games on both PC and Xbox. That is our goal.

At the same time, Xbox is facing declining hardware revenue, memory shortages, and rising prices. Nadella expects the division to return to growth in the next fiscal year.

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