After Xbox laid off 1,600 employees over the summer, Microsoft’s gaming division followed up with more layoffs and studio closures this week. In the wake of these events, Microsoft CEO Satya Nadella is taking a look at the bright side and praising Xbox CEO Asha Sharma’s actions as a necessary step.
“There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see,” said Nadella during his appearance on the Sources Podcast. He also noted that he feels “fantastic about the IP we have right now. If I look at the studios, the IP portfolio we have, and our ability to then take that and produce great games going forward, I feel fantastic.”
“We have to invent the right sustainable business model that allows us to deliver gaming to more and more people,” added Nadella.
Regarding AI, Nadella questioned why Western consumers are so skeptical about the technology compared to other parts of the world.
“I think we’ve not given [AI] breathing space,” said Nadella. “In fact … I was reading the Gallup poll on AI and it’s not good in the West. What’s also very interesting … it’s not a uniform thing around the world. And in fact that’s the thing we should ask: ‘What did we get wrong in the West that these other countries may not have?’ Why are people in Nigeria more optimistic about AI than in the United States?’ And I think we should reflect on it and my belief here is the industry [has] to earn the trust [and] show the benefits to both consumers and enterprises and the communities. And then … we’ll be fine. But without it, just any amount of just celebrating technology for technologies sake is not working.”
Prominent AI skeptic Ed Zitron has blamed Xbox’s precarious position on “catastrophic mismanagement” by Microsoft and AI bets that didn’t pan out. Even after the most recent layoffs, there are indications that more job cuts are coming to Xbox.