Microsoft CEO Says “Streamlining” by Xbox Team is “Great to See” in the Wake of Layoffs

Microsoft CEO Says “Streamlining” by Xbox Team is “Great to See” in the Wake of Layoffs

By Ravi Sinha
Publication Date: 2026-09-27 18:15:00

Xbox’s ongoing restructuring, which began in July with 1,600 layoffs, has led to a severely diminished Halo Studios, World’s Edge being cut in half, and Ninja Theory potentially primed for closure. Oblivion is now reporting to Bethesda, Turn 10 and Playground are one, and Activision is developing the next Halo.

And while mixed impressions abound about, well, everything, one person is feeling confident about the whole situation: Microsoft CEO Satya Nadella. On Alex Heath’s Sources Podcast, Nadella said he feels “fantastic about the IP we have right now. 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.”

Regarding Xbox CEO Asha Sharma’s resetting of the division, he remarked, “There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see.” The next step is to “invent the right sustainable business model that allows us to deliver gaming…