Xbox Faces Cuts as Leadership Resets Division
Satya Nadella said Xbox must monetize games better as Microsoft weighs new business models after losing millions of Game Pass subscribers.
- Xbox CEO Asha Sharma announced a strategic 'reset' of the gaming division to build a sustainable business, as Microsoft CEO Satya Nadella expressed impatience with current profit margins and the need to innovate economically.
- Microsoft has invested over $80 billion in Xbox over the last decade, yet accountability margins remain only 3 percent; annual revenue declined by nearly $500 million, prompting the leadership overhaul.
- A 'hardware component crisis' driven by AI demand is inflating costs and limiting console supply, which Sharma and Xbox Chief Content Officer Matt Booty cited as forcing a reevaluation of past operational choices.
- Citing anonymous sources, Bloomberg reported Wednesday that Xbox plans major job cuts in early July following Microsoft's June 30 fiscal year end, though the internal memo did not officially detail specific measures.
- Nadella noted 'there's more monetization of Xbox games happening on YouTube' than at Microsoft, emphasizing the division must innovate in hardware and games to ensure long-term sustainability and capture more value.
11 Articles
11 Articles
Satya Nadella Says 'There's More Monetization of Xbox Games Happening on YouTube Than at Microsoft' in CEO's First Comments Since Asha Sharma's 'Reset' Memo
Microsoft CEO Satya Nadella said he believes "there's more monetization of Xbox games happening on YouTube" than at its own company, following Xbox boss Asha Sharma's recent commitment to "reset" the gaming branch.Nadella commented on the state of Xbox in 2026 during a recent conversation with Hard Fork. When asked about Sharma's memo, which saw her outline a plan for the next 100 days amid a tumultuous time for the company, he said the current …
A few days after Asha Sharma, Microsoft's boss himself took the floor to take stock of the Xbox brand. The speech remains ambiguous, between alarmism and optimism, but shows a real will to do things differently so that the activity of the gaming branch gets a little bit more fun, on the financial level at least. In an interview given to the New York Times, Satya Nadella explains that it is time to "end 25 years of investments" to focus "on the s…
Despite how well the recent Xbox Games Showcase was, Microsoft’s gaming brand is not going through its best moment and we could see another massive round of layoffs; even if they were denied. But, beyond what Asha Sharma says, now the news is Satya Nadella. Microsoft’s CEO says they should make Xbox "sustainable" and, in addition, that YouTube monetizes their games more than they do. Moreover, it seems to make it clear that they have been subsid…
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
