Microsoft’s CEO, Satya Nadella, has voiced his support for the company's ongoing restructuring of its gaming division, even as it has faced major job cuts and the closure of several studios. The Xbox division, which is part of Microsoft’s broader gaming strategy, has announced a total of 3,200 job cuts. The second wave of layoffs is now about 75% complete. Nadella described the reorganization as a "good thing" and expressed satisfaction with the studios and licenses that remain under Microsoft's control. He also endorsed the plans of Asha Sharma, the new head of Xbox, who aims to return the business to growth in the next fiscal year by focusing on key licenses and exploring new ways to generate revenue from games. Several well-known Xbox studios have been affected by the changes. Halo Studios, known for the Halo video game franchise, has experienced significant staff reductions, and the Halo license has been transferred to Activision. Rare, the studio behind the popular game Sea of Thieves, has also been impacted. Obsidian Entertainment, known for titles like The Outer Worlds, has been reassigned to Bethesda. In the United Kingdom, Ninja Theory, the studio behind Enslaved and Soulcalibur VI, appears to be heading toward closure after failed attempts to sell the company. Meanwhile, Double Fine, Compulsion Games, and Undead Labs have left Microsoft to operate independently, while Arkane Studios, known for the Dishonored series, is still up for sale. Nadella emphasized that the restructuring is intended to help Xbox refocus on its core strengths: its studios, game licenses, and game production. This process involves making difficult decisions, such as cutting teams and reevaluating the organizational structure that was established in recent years under the leadership of Phil Spencer, who previously headed the Xbox division. The long-term goal is to position Xbox as a major publisher and platform provider for games on both personal computers and consoles. This includes efforts to make Microsoft’s games more accessible to a broader audience, which aligns with preparations for the next generation of Xbox consoles. Microsoft is also exploring new business models and has been gathering player feedback on what features they expect from the next generation of consoles. One of the upcoming projects, Project Helix, has been the subject of leaks and speculation, including its potential performance capabilities. The company has shown interest in features such as support for physical game discs, which have become less common in recent years with the rise of digital distribution. As the gaming industry evolves, Microsoft is working to ensure that its next console meets the needs and expectations of players worldwide.