Microsoft chief executive Satya Nadella has described Xbox’s ongoing restructuring as “great to see”, following extensive layoffs and changes across its gaming operations. His comments signal senior management’s support for a smaller, more focused business, although they have drawn attention because the streamlining has involved substantial job losses and studio changes.

Xbox is reportedly about three-quarters of the way through a restructuring expected to eliminate around 3,200 jobs, alongside cancelled games and studio consolidations or divestments. Nadella said he remains confident in Xbox’s intellectual property and expects the division to return to growth in the next financial year, while emphasising the need for a sustainable business model and stronger game output.