Xbox has plunged headfirst into a massive restructuring following Asha Sharma taking the helm as CEO. Back in early July, 1,600 positions were culled, and the corporation is gunning to axe another 1,600 by the end of the fiscal year on June 30, 2027. Naturally, Microsoft CEO Satya Nadella stepped into the public spotlight to praise the Xbox head's ruthless business streamlining as positive, turning quite a few heads in the process.

During an interview released on September 25 with the Sources Podcast, Nadella fielded questions regarding the current state of the Xbox business. Nadella doubled down, highlighting that Xbox CEO Asha Sharma is laser-focused on doubling down on runaway hits, sniffing out fresh business models, and dragging the gaming division kicking and screaming back onto a growth trajectory.

Nadella noted, "Right now, the team and Asha are pushing through some serious business streamlining, which is a thoroughly positive development. We simply have to construct a proper, sustainable business model capable of piping games into the hands of a much broader audience." Nadella added, "Our everlasting goal has always been to stand as both an exceptional publisher and a stellar platform provider across PC and Xbox alike. Asha and the team have made it clear that Xbox will swing back into growth mode next fiscal year, and they are actively executing that playbook right now."

Meanwhile, on September 22 local time, Details of the Second Restructuringwere brought to light. A grand total of 268 staff members were shown the door across internal development studios and central management departments. Along the way, the Halo franchise was shipped off to Activision, while Obsidian Entertainment was bundled into Bethesda. Playground Games and Turn 10, the brilliant minds behind the Forza series and the upcoming Fable project, were smashed together into a single entity. Finally, State of Decay 3 developer Undead Labs is spinning off into independence, while Ninja Theory has kicked off internal consultations with closure looming heavily over the studio.