Microsoft CEO says Xbox's "streamlining" is "great to see" despite cuts and layoffs

Microsoft CEO Satya Nadella praised Xbox's streamlining efforts under Xbox CEO Asha Sharma, despite recent layoffs. Nadella expressed confidence in the company's intellectual property, studios, and ability to create successful games. He emphasized the importance of developing a sustainable business model to deliver gaming to more people.

Nadella also mentioned that Xbox aims to return to growth in the next fiscal year. The article addresses recent rumors of more job cuts at Xbox, which were confirmed to include 268 layoffs and the potential closure of British studio Ninja Theory. Other organizational changes include the merging of Obsidian, Playground, and Turn 10, the independence of Undead Labs, and the relocation of Rare, World's Edge, and Halo to Activision's control.

Undead Labs and World's Edge have already experienced significant layoffs. Xbox CEO Asha Sharma announced the initial 3,200 employee cuts in July, with 1,600 taking effect immediately.