Microsoft CEO Satya Nadella expressed strong support for Xbox CEO Asha Sharma’s ongoing corporate reset and studio restructuring strategy during a podcast appearance, despite ongoing layoffs impacting thousands of employees. Nadella stated he feels “fantastic” about the company’s intellectual property portfolio and current streamlining efforts aimed at securing future growth across both console and PC markets.
Nadella Addresses Xbox Restructuring and IP Portfolio
During an appearance on the Sources Podcast hosted by Alex Heath, Microsoft CEO Satya Nadella discussed the current trajectory of the Xbox brand under its new leadership. Pointing to the company’s long history in gaming dating back to 1982’s Microsoft Flight Sim, Nadella praised the streamlining initiatives led by Xbox CEO Asha Sharma.
“I feel fantastic about the IP we have right now,” Nadella said on the podcast. “If I look at the studios, the IP portfolio we have, and our ability to then take that and produce great games going forward, I feel fantastic.”
Layoffs and Streamlining Amid Growth Targets
The corporate reset overseen by Sharma has involved significant workforce reductions and structural shifts, including moving the Halo franchise under Activision. Over 1,600 Xbox employees have been laid off this year, with plans for another 1,600 cuts before the fiscal year concludes.
Nadella offered no apologies for the workforce reductions, framing them as part of necessary streamlining. “There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see,” Nadella stated. He added that the ultimate goal is to build a sustainable business model that delivers gaming to broader audiences across PCs and Xbox consoles, with Sharma’s team projecting growth for the upcoming fiscal year.
Did you know? Microsoft reported reaching 500 million monthly users across all its platforms in 2025, while current console sales figures remain withheld from public release.
Ambitious Expansion Goals Face Industry Scrutiny
Sharma’s stated objective for Xbox is to reach a scale where the brand entertains more than a billion people each day. Achieving this milestone requires driving higher revenue and expanding user reach while simultaneously operating with fewer development studios and staff members following the extensive restructuring.
Frequently Asked Questions
Who is leading the current Xbox corporate reset?
Asha Sharma serves as the CEO overseeing the current Xbox reset and restructuring strategy.
What did Satya Nadella say about the state of Xbox?
Microsoft CEO Satya Nadella stated on the Sources Podcast that he feels “fantastic” about the brand’s IP portfolio and studios, while praising ongoing team streamlining.
How many layoffs have occurred at Xbox?
Over 1,600 Xbox employees have been cut this year, with plans for an additional 1,600 layoffs before the end of the fiscal year.
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