Microsoft CEO Satya Nadella described the Xbox division's ongoing cuts as "streamlining" that is "great to see" during an appearance on the Sources Podcast with Alex Heath. The remarks come as Xbox continues its largest restructuring, with another 268 positions eliminated in September across Halo Studios and central functions, following the July elimination of roughly 1,600 roles and plans for 1,600 more by fiscal year end.

Xbox CEO Asha Sharma's reset has shifted multiple studios, including moving Obsidian Entertainment under Bethesda Softworks oversight while the studio continues Grounded and collaborates on a new Fallout project. Bethesda president Jill Braff assured staff the change is "primarily a change in reporting structure" and that Obsidian's "creative identity and strengths" will remain intact under Feargus Urquhart's leadership. Reports indicate some Obsidian staff have expressed concerns over potential autonomy loss in the tighter structure.

Nadella expressed optimism about the company's IP portfolio and ability to produce games, while stressing the need for a sustainable business model to reach more players across PC and console. The comments align with Sharma's earlier memo noting Xbox operating margins three to ten times lower than peers after years of heavy investment yielded declining revenue. Microsoft has now completed about three-quarters of the announced restructuring.