Microsoft CEO Nadella Says Gaming Needs Good Margins To Innovate, Compares Strategy To Office

The best way to innovate in gaming is to have good margins, that's according to Microsoft chief executive Satya Nadella. He made the comments during an interview days after Bloomberg reported that Microsoft has expected unrealistic profit margins from its gaming division, which the report suggested was a likely reason for studio closures, game cancelations and thousands of layoffs at Xbox.

Nadella used the word 'innovation' at least five times during the interview but never offered specifics about what he meant by it. He said Microsoft needs to 'invent, maybe, some new interactive media' because gaming's competition is short-form video rather than other games. The CEO described Microsoft's new gaming strategy as being 'everywhere, on every platform' after comparing the company's game publishing business to Microsoft Office. He said 'the biggest gaming business is the Windows business' and added that he is looking forward to 'the next console, the next PC gaming.'

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