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Microsoft CEO Satya Nadella spoke on the Sources Podcast about ongoing changes at Xbox, calling the division's 'streamlining' under Xbox CEO Asha Sharma 'great to see.' His comments came just days after another round of layoffs and studio closures hit Xbox, following a summer wave that already cut around 1,600 jobs. Nadella said Microsoft needs to 'invent the right business model' to deliver gaming to more people, framing the cuts as a business necessity. The remarks drew significant backlash from press and fans, who characterized them as tone-deaf given the scale of layoffs affecting thousands of Xbox employees and multiple studio closures this year. Outlets including IGN, Eurogamer, GameSpot, and PC Gamer all covered the reaction, with some describing the comments as further eroding goodwill toward the Xbox brand at a time of significant upheaval within Microsoft's gaming division.