Microsoft CEO Satya Nadella has publicly praised Xbox's ongoing restructuring under Xbox CEO Asha Sharma, describing the "streamlining" as "great to see" despite significant job cuts continuing across the division. His comments come days after confirmation of further layoffs affecting 268 employees and the apparent closure of British studio Ninja Theory, alongside major organisational changes that see several studios moving under different corporate divisions.

This latest round of cuts follows a larger restructuring announced in July, when Asha Sharma revealed job cuts affecting 3,200 employees—described as the "most significant" the company had undertaken—with 1,600 taking effect immediately. The restructuring has involved substantial moves, including Obsidian moving under Bethesda's control, Playground and Turn 10 merging, Undead Labs becoming independent whilst also suffering major layoffs, and Rare, World's Edge and the Halo franchise moving under Activision's control. Nadella expressed confidence that Xbox would return to growth in the next fiscal year, emphasising Microsoft's goal to become a leading publisher and platform provider across PCs and Xbox consoles.