Microsoft CEO says Xbox has "the best IP" and "talented studios around the world," is confident it'll "return" to growth after its worst quarter in years amid mass layoffs

Following Microsoft's plans to cut 3,200 employees at Xbox coming to light, it's been hard to imagine just how the company's – and, more specifically, its gaming branch's – future looks. According to CEO Satya Nadella, however, the future is bright. During an earnings call following a quarterly financial report, one that notably shows Xbox having had its worst quarter in terms of profits in years, the Microsoft lead shares as much. "When it comes to Xbox," he explains, "we are making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long-term growth." This echoes what Xbox head Asha Sharma has been saying about Xbox having a "reset" – although she has also admitted the company is "unhealthy" in its current state. Nadella goes on to assure, "We have the best IP in the industry, and talented studios around the world, and believe we can bring these strengths together and expect to return the business to growth in fiscal 2027." This feels like a lot, given, well, everything. Nadella discusses Windows as a whole, and its other brands like Bing and Edge, concluding that, "In closing, I am energized about the opportunities ahead. I have never been more confident in Microsoft's opportunity to drive durable, long-term growth and ensure the benefits of AI flow broadly." It's certainly a notable bout of confidence, all things considered – but it does leave me wondering: which IP is the CEO alluding to? The Elder Scrolls and Bethesda's other RPG giants immediately spring to mind, as does Gears of War with its upcoming entry, Gears of War: E-Day. It's difficult to fathom a healthy, thriving Xbox, however, amid all of the layoffs and shuffling about – "best IP in the industry" or not. I suppose only time will tell what the future holds for Microsoft's gaming branch, though. There are a good few months left until the next quarterly financial report. 200 million new Xbox players weren't enough to offset falling revenue in its latest fiscal year, CEO says: "We need to close that gap." [/url]

Jul 30, 2026 - 18:20

Microsoft CEO says Xbox has "the best IP" and "talented studios around the world," is confident it'll "return" to growth after its worst quarter in years amid mass layoffs

Following Microsoft's plans to cut 3,200 employees at Xbox coming to light, it's been hard to imagine just how the company's – and, more specifically, its gaming branch's – future looks. According to CEO Satya Nadella, however, the future is bright.

During an earnings call following a quarterly financial report, one that notably shows Xbox having had its worst quarter in terms of profits in years, the Microsoft lead shares as much.

"When it comes to Xbox," he explains, "we are making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long-term growth."

This echoes what Xbox head Asha Sharma has been saying about Xbox having a "reset" – although she has also admitted the company is "unhealthy" in its current state.

Nadella goes on to assure, "We have the best IP in the industry, and talented studios around the world, and believe we can bring these strengths together and expect to return the business to growth in fiscal 2027." This feels like a lot, given, well, everything.

Nadella discusses Windows as a whole, and its other brands like Bing and Edge, concluding that, "In closing, I am energized about the opportunities ahead. I have never been more confident in Microsoft's opportunity to drive durable, long-term growth and ensure the benefits of AI flow broadly."

It's certainly a notable bout of confidence, all things considered – but it does leave me wondering: which IP is the CEO alluding to?

The Elder Scrolls and Bethesda's other RPG giants immediately spring to mind, as does Gears of War with its upcoming entry, Gears of War: E-Day. It's difficult to fathom a healthy, thriving Xbox, however, amid all of the layoffs and shuffling about – "best IP in the industry" or not.

I suppose only time will tell what the future holds for Microsoft's gaming branch, though. There are a good few months left until the next quarterly financial report.

200 million new Xbox players weren't enough to offset falling revenue in its latest fiscal year, CEO says: "We need to close that gap."

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