MICROSOFT CEO Satya Nadella joined Xbox CEO Asha Sharma for an internal Q&A session to outline the company’s long-term vision for the gaming business.
During the discussion, Sharma referenced Nadella’s earlier remarks about being “long on gaming” and asked him to expand on what that commitment means for Microsoft. Nadella explained that the philosophy aligns with the company’s broader approach to its businesses.
“Frankly this applies to anything that we do. We should be in the core of what we do here for gaming’s sake. It’s not about anything other than being just an excellent company, and an excellent steward for what it means to produce great games, produce great systems and hardware,” Nadella said.
Nadella also highlighted gaming’s historical importance within Microsoft’s technology ecosystem. He noted that the gaming sector has played a key role in accelerating innovations across several areas, including cloud computing, the Microsoft Windows platform and the rise of GPU-powered server infrastructure. Despite these advancements, he stressed that Microsoft would not lose sight of the traditional gaming experiences that players expect.
Sharma spoke about her recent engagements with various Xbox teams and reflected on Microsoft’s legacy as a software-driven company. She noted that while software can often be produced at scale, great games require a different approach. She then asked Nadella about Microsoft’s responsibility to safeguard the Xbox community and fan base.
Responding to the question, Nadella emphasised the cultural power of games and their ability to tell meaningful stories. “Why do we love games? They tell the stories, the mythologies that make us who we are. Getting down to that core, the craft that goes with it, this is the place where we have to get the cultural zeitgeist and then have it manifest in everything that we do. In the games, in the marketing approach, everything that we do in this brand represents that.”
Nadella also suggested that other divisions within Microsoft could learn from Xbox’s consumer-focused approach. According to him, the gaming business often strengthens the company’s broader relationship with customers.
Sharma acknowledged that the Xbox division has faced several challenges recently, describing the gaming industry as being in a period of transition. She said the company is reassessing parts of its strategy, echoing earlier comments in which she indicated that Microsoft is reviewing certain decisions made over the past year.
Looking ahead, Nadella stressed the importance of maintaining the trust of existing players as the company evolves its gaming strategy.
Nadella concluded by describing gaming as a positive force in society. In contrast to the rise of passive doom-scrolling habits online, he suggested that interactive activities such as gaming and coding can bring greater joy and engagement, ultimately contributing to a more positive digital culture.
