Microsoft CEO Says ‘Streamlining’ at Xbox is ‘Great to See’ as Layoffs Affect Thousands
ign.com Sep 26, 2026

Microsoft CEO Says ‘Streamlining’ at Xbox is ‘Great to See’ as Layoffs Affect Thousands

AI-summarised brief · reviewed before publication

Microsoft CEO Satya Nadella told the Sources Podcast that the recent “streamlining” of Xbox is “great to see,” despite layoffs that have cut roughly 1,600 jobs in July and another 1,600 slated before year‑end. He praised the brand’s intellectual property and its capacity to produce “great games,” while emphasizing the need for a sustainable business model that expands gaming access across PCs and consoles. Nadella highlighted Xbox CEO Asha Sharma’s plan to return the division to growth in the next fiscal year and to strengthen its role as both a publisher and platform provider. Recent moves include shifting Halo to Activision teams, moving Obsidian’s Fallout: New Vegas under Bethesda, and the departure of studios such as Double Fine and Ninja Theory as part of a broader “reset” strategy.

💡 Why It Matters

  • · The comments reveal Microsoft’s confidence that a leaner Xbox can still drive content creation while reshaping its revenue model, signaling a decisive pivot toward platform‑centric growth.