Microsoft boss: Xbox is not being killed, the company still “committed to gaming”
Microsoft CEO Satya Nadella has responded to speculation that the company could scale back or exit the gaming sector to focus on higher-margin businesses such as artificial intelligence and cloud computing.
During an internal question-and-answer session, Nadella told employees that Microsoft remains committed to gaming and plans to increase its investment in the area in the coming years.
Nadella rejected claims that the company might abandon gaming to focus more heavily on Windows, Azure, and AI initiatives. He described gaming as one of Microsoft’s defining businesses over the past twenty years and said it will continue to play an important role within the company’s broader strategy.
Nadella also highlighted the role gaming has played in strengthening Microsoft’s overall technology ecosystem. According to him, the gaming division has helped accelerate growth in both the cloud and personal computing segments. At the same time, he acknowledged that recent decisions have drawn criticism from the gaming community and said Microsoft will continue to invest in gaming.
Concerns about the future of Xbox intensified last week after Seamus Blackley, one of the original Xbox creators, suggested that Microsoft was preparing to phase out the brand as part of a broader plan to exit the gaming hardware market in the coming years. His comments quickly circulated online, prompting speculation that Xbox consoles could eventually disappear and raising questions about the long term value of Microsoft’s major gaming acquisitions, including Activision Blizzard.
The speculation came amid leadership changes within Microsoft’s gaming organization. Longtime gaming chief Phil Spencer stepped down, while Xbox president Sarah Bond also resigned unexpectedly. The appointment of Asha Sharma, who previously worked in Microsoft’s AI division, to lead Microsoft Gaming further fueled industry speculation that the company might be shifting its priorities away from traditional gaming.
Despite these rumors, Microsoft recently confirmed earlier reports that its next-generation Xbox will combine elements of a console and a PC. The system is expected to run both Xbox and Windows titles. Sharma revealed last week that the project carries the internal codename “Project Helix” and will support games from both platforms.
