Here’s How Microsoft’s CEO Spoke About Xbox A Year Ago Vs. Now

Satya Nadella gave a notably more cautious Xbox update on Microsoft’s latest earnings call, signaling a reset after layoffs, content changes, and studio separations.

He said the gaming business needs restructuring for long-term growth and projected a return to growth in fiscal 2027.

The shift marks a stark contrast to last year’s upbeat tone, even as Microsoft posts strong overall financial results.

The message underscores pressure on Xbox and a broader reorganization across Microsoft’s gaming division.