Microsoft has refuted recent reports suggesting that CEO Satya Nadella considered shutting down the Xbox gaming division in 2021. The rumors, which surfaced on January 15, were quickly spread across various media outlets. Microsoft has now officially responded, clarifying the situation.
Debunking the Rumors
According to Insider Gamer, Microsoft denies the claims made by The Information. Microsoft representatives stated that, instead of planning to close the Xbox division, Nadella emphasized the company's commitment to gaming in 2021. Microsoft clarified their intentions and business plans during the time when the alleged plan was supposed to have been in discussion.
Xbox Engagement and Game Pass
Microsoft also highlighted that Xbox player engagement is higher than ever, with over 500 million monthly users across all platforms (including mobile). They also addressed concerns about developers' dissatisfaction with Game Pass, clarifying that developers always have the option to receive upfront payments for partnering with the company.
Strategic Shift
Microsoft has recently begun shifting away from exclusivity, a move which has been criticized by some long-time fans, who see it as a boost to PlayStation.
