Microsoft CEO Satya Nadella was recently featured in a lengthy interview on the Sources Podcast, and he briefly discussed this week's new chapter in the Xbox restructuring plan, though not in a way that would make him any more endearing to fans and developers.

For starters, he called the streamlining that CEO Asha Sharma and her team are doing "great to see". That's certainly not how a lot of people would describe the significant job losses accompanying the Xbox reset; just this week, 268 layoffs were announced on top of the 1,600 that occurred two months ago. And it's not over yet, as Xbox's stated goal is to reduce the headcount by 3,200 employees before the end of the fiscal year.

I always say at Microsoft, we’ve had gaming, in fact, I think we’ve had gaming even before, as a category, before Windows. That’s right, Flight Sim. And so, to me, it’s in the same core DNA, like developer tools and knowledge work. And I feel fantastic about the IP we have right now, which is, 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.

There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see. And then we have to invent the right sustainable business model that allows us to deliver gaming to more and more people.

That has always been the goal, which is we want to be a great publisher and a great platform provider for games across both PCs and Xboxes. And so that is sort of our goal. And I think Asha and team have said that Xbox is going to get back to growth this next fiscal year. And that’s the plan they’re executing on, and, in that process, do a bang-up job of producing some great games.

Nadella also mentioned that Sharma and her team have claimed the Xbox division will return to growth in the next fiscal year, but in reality, it was actually his mandate in the first place. The Microsoft CEO had previously said in no uncertain terms that, after 25 years of investment, Xbox must finally become a sustainable business; the alternative being, according to rumors, a potential sale or joint venture.

It won't be easy for Asha Sharma to accomplish what Nadella has asked for, especially with significant headwinds like the component crisis.

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