Microsoft CEO Nadella says Xbox games earn more on YouTube

Microsoft chief executive Satya Nadella told a Hard Fork interview that more revenue from Xbox games is currently being generated on YouTube than through Microsoft’s own channels. He made the comment while discussing Xbox head Asha Sharma’s June 10 memo outlining a 100‑day “reset” plan for the division, which faces a “hardware component crisis,” declining Game Pass subscriptions after an October price increase, and uncertainty over its exclusivity strategy. Nadella emphasized the need to turn Xbox into a financially sustainable business, noting that the company has historically subsidized entertainment rather than fully monetizing it. The remarks came as reports surfaced about significant layoffs planned for July 2026 and speculation about further restructuring of the gaming unit.