Microsoft CEO Satya Nadella confirmed that the Xbox division is currently undergoing a restructuring process. The initiative is approximately 75% complete and has involved significant workforce reductions, the cancellation of several game titles, and the consolidation or divestment of specific studios.
During an interview on the Sources podcast, Nadella expressed confidence in the current portfolio of Xbox studios and intellectual properties. He noted that the team, led by new Xbox CEO Asha Sharma, is focused on streamlining operations to improve efficiency.
While the company maintains key assets such as Minecraft and the recently acquired Activision Blizzard, specific details regarding the future organizational structure of these studios remain undisclosed. Nadella emphasized that the primary objective is to develop a sustainable business model that expands the reach of their gaming content.
Microsoft aims to maintain its dual role as both a game publisher and a platform provider across PC and Xbox ecosystems. According to Nadella, the leadership team has established a strategic roadmap intended to restore growth for the gaming division by the next fiscal year.
