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While the new Xbox leadership team under CEO Asha Sharma has been on a charm offensive lately--while also promising a "reset" for the division that suggests layoffs are on the way--Microsoft CEO Satya Nadella got down to brass tacks recently. During a panel at the New York Times Hard Fork event, Nadella spoke about how Xbox will have to find a way to become more profitable as it enters a new era. "No one can accuse Microsoft of not having invested for the last 25 years," Nadella said. "And now we have to turn this into a sustainable business that delivers what is fundamentally one of the best

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Microsoft recently announced mass layoffs affecting 4,800 people, including 3,200 at Xbox, and now US Senator Bernie Sanders (D-VT) has ripped the technology giant for cutting staff at a time when it's making massive profits. Posting on social media, Sanders pointed out how Microsoft made more than $100 billion in profit in 2025, with CEO Satya Nadella getting paid $96 million. He also called out how US President Donald Trump's new tax plan would save Microsoft $12.5 billion. "Please don’t tell me corporate tax breaks create jobs. It never trickles down," he said, calling out the Xbox layoffs

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Xbox CEO Asha Sharma confirms 4 studios are leaving Microsoft, with a fifth, Arkane Studios, fate uncertain amid mass layoffs.