Microsoft CEO Satya Nadella defended the recent operational changes at Xbox during an appearance on the Sources podcast with Alex Heath.
- Microsoft cut 268 workers following a July announcement of 3,200 layoffs, affecting 1,600 positions immediately.
- Halo, Rare, and World's Edge moved under Activision control.
- Obsidian Entertainment shifted under Bethesda, while Playground Games and Turn 10 merged.
- Undead Labs, Double Fine, and Compulsion Games transitioned to independence, though Undead Labs head Philip Holt confirmed State of Decay 3 remains in active development.
Leadership and Restructuring
Nadella praised the ongoing restructuring overseen by Xbox CEO Asha Sharma. He stated that he feels confident about the division's intellectual property portfolio.
"And then we have to invent the right sustainable business model that allows us to deliver gaming to more and more people. That has always been the goal, which is we want to be a great publisher and a great platform provider for games across both PCs and Xboxes."
Satya Nadella, Microsoft CEO
"So that is sort of our goal, and I think Asha and the team have said that Xbox is going to get back to growth this next fiscal year, and that's the plan they're executing on, and in that process, do a bang-up job of producing some great games."
Satya Nadella, Microsoft CEO
