Satya Nadella says Xbox must "invent the right sustainable business model" to grow

On a Sept. 25 episode of the Sources Podcast, Microsoft CEO Satya Nadella addressed Xbox’s restructuring during a new wave of layoffs. Interviewed by Alex Heath, Nadella said he feels positive about Xbox’s current franchises and spoke favorably about the cutbacks being handled by Xbox CEO Asha Sharma, a reference to reductions expected to affect 3,200 employees before Microsoft’s fiscal year ends. The episode aired three days after Xbox content chief Matt Booty announced a second round this year, with 268 jobs eliminated; Halo Studios was reportedly most affected as the Halo property moves to Activision, while World’s Edge was also affected and Ninja Theory reportedly faces closure. Nadella also said the gaming unit needs a lasting commercial approach to reach more players, and he hoped it would return to growth in the next fiscal year with strong games.