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Microsoft CEO Satya Nadella mentioned he believes “there’s more monetization of Xbox games happening on YouTube” than at its personal firm, following Xbox boss Asha Sharma’s current dedication to “reset” the gaming department.
Nadella commented on the state of Xbox in 2026 throughout a current dialog with Hard Fork. When requested about Sharma’s memo, which noticed her define a plan for the following 100 days amid a tumultuous time for the corporate, he mentioned the present problem will see the Xbox workforce making an attempt to determine how one can “innovate both in hardware, as well as in the games, going forward in an economically viable way.”
“No one can accuse Microsoft of not having invested for the last 25 years,” Nadella added. “Now, we have to turn this into a sustainable business that delivers what is fundamentally one of the best sources of entertainment, still.”
It’s no secret that Xbox goes by a tough patch. While Microsoft’s gaming division gained a good bit of momentum from the Xbox Games Showcase 2026 presentation final weekend, it was nearly instantly put proper again within the scorching seat as followers grew more and more confused by its exclusivity technique. News that the corporate had misplaced thousands and thousands of Game Pass subscribers following an October value hike, in addition to questions of whether or not or not the model was fixable, did not assist its scenario.
It all got here to a head when Sharma posted her June 10 memo, saying that, though her first 100 days since taking on as Xbox CEO have been optimistic, tough waters pushed by a “hardware component crisis” lie forward. Now, as Xbox appears into new enterprise fashions, Nadella has chimed in.
“Still, the challenge we have is we’ve not been monetizing that entertainment,” he mentioned. “In fact, if anything, we’ve been subsidizing that entertainment.”
“There’s more monetization of Xbox games happening on YouTube than at Microsoft,” Nadella added with a chuckle. “So, that doesn’t mean we go do things that are unnatural. We want us to do what is really our job, which is to build great games, build great hardware, but we’ve got to do it in an economically sustainable way.”
For now, Xbox will proceed charging forward in hopes of carving out a extra sustainable future. For extra, you may learn concerning the important layoffs reportedly deliberate for July 2026. You may also find out about one other report relating to a possible shakeup for Xbox and its position at Microsoft, in addition to what some analysts consider lies in retailer.
Michael Cripe is a contract author with IGN. He’s finest recognized for his work at websites like The Pitch, The Escapist, and OnlySP. Be certain to offer him a comply with on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).
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