Xbox continues its restructuring – and Microsoft CEO Satya Nadella thinks it's a very good thing. In a podcast interview, he called the ongoing “streamlining” process within the gaming division “great to see,” shortly after another 268 employees lost their jobs.
What Did Microsoft CEO Satya Nadella Say About the Xbox Restructuring?
On the “Sources Podcast” with Alex Heath, Nadella spoke openly about the ongoing cuts at Xbox. He literally said: “There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see.” With this, he refers to Xbox head Asha Sharma, who has been driving a radical reorganization of the division since taking office. Nadella also emphasized that he feels “fantastic” about Xbox's remaining IP portfolio and anticipates growth again for the upcoming fiscal year.
Which Studios Are Specifically Affected by the Xbox Restructuring?
Just recently, Microsoft cut another 268 jobs in the Xbox division – in addition to the approximately 1,600 jobs that were already eliminated as part of the ongoing reorganization. As part of the restructuring, the Halo brand is moving to Activision, while Obsidian Entertainment will henceforth belong to Bethesda. Microsoft has completely divested or closed several studios. In summary, the current restructuring looks like this:
- 268 additional layoffs in the Xbox division in the latest round
- Halo brand moves to Activision
- Obsidian Entertainment assigned to Bethesda
- Double Fine, Compulsion Games, and Undead Labs completely leave Microsoft
- Ninja Theory apparently faces closure after failed sales attempts
How Does Nadella's Statement Fit into the Previous Xbox Restructuring?
From our perspective, Nadella's choice of words seems remarkably open: where other corporate leaders usually describe layoffs with cautious phrasing, he speaks bluntly of something “great.” We have already reported on how uncertain the future looks for individual studios, for example, in our article on the current status of the next Halo game, which, according to insider reports, was still years away from completion before the brand now moved to Activision. Our report on fan reactions to the impending Ninja Theory closure shows how emotionally the topic is discussed in the community. For players, the restructuring primarily means one thing: for ongoing and announced Xbox projects from the affected studios, it remains unclear for the foreseeable future whether and how they will continue.
What do you think of Nadella's choice of words – an honest statement or quite cold-hearted? Let us know in the comments!
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