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Satya Nadella, Chairman and CEO, shared the below communication with Microsoft employees this morning.

As we begin a new fiscal year, I’ve been reflecting on the road we’ve travelled together and the path ahead.

Before anything else, I want to speak to what’s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations. These decisions are among the most difficult we have to make. They affect people we’ve worked alongside, learned from, and shared countless moments with—our colleagues, teammates, and friends.

I want to express my sincere gratitude to those who have left. Their contributions have shaped who we are as a company, helping build the foundation we stand on today. And for that, I am deeply grateful.

I also want to acknowledge the uncertainty and seeming incongruence of the times we’re in. By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right. We’re investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognized and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs.

This is the enigma of success in an industry that has no franchise value. Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding. But it’s also a new opportunity for us to shape, lead through, and have greater impact than ever before.

The success we want to achieve will be defined by our ability to go through this difficult process of “unlearning” and “learning.” It requires us to meet changing customer needs, by continuing to maintain and scale our current business, while also creating new categories with new business models and a new production function. This is inherently hard, and few companies can do both.

But I have full confidence that we can, and we will once again find the resolve, courage, and clarity to deliver on our mission in this new paradigm.

With that context, I want to re-ground ourselves in our why, what, and how: our mission, our priorities, and our culture.

Our why: mission 

What does achieving our mission look like and feel like for us as a company? When Microsoft is succeeding, the world around us must succeed too. This is why each of us chose to be here, and as a company it’s how we earn our social permission to operate. When Bill founded Microsoft, he envisioned not just a software company, but a software factory, unconstrained by any single product or category. That idea has guided us for decades. But today, it’s no longer enough.

We must reimagine our mission for a new era. What does empowerment look like in the era of AI? It’s not just about building tools for specific roles or tasks. It’s about building tools that empower everyone to create their own tools. That’s the shift we are driving—from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve.

Just imagine if all 8 billion people could summon a researcher, an analyst, or a coding agent at their fingertips, not just to get information but use their expertise to get things done that benefit them. And consider how organizations, empowered with AI, could unlock entirely new levels of agility and innovation by transforming decision-making, streamlining operations, and enabling every team to achieve more together than ever before.

That’s the empowerment our mission enables, creating local surplus in every company, community, and country. And that’s our opportunity ahead.

Our what: priorities 

To deliver on our mission, we need to stay focused on our three business priorities: security, quality, and AI transformation.

We are doubling down on the fundamentals while continuing to define new frontiers in AI.

Security and quality are non-negotiable. Our infrastructure and services are mission critical for the world, and without them we don’t have permission to move forward.

We’ve made substantial progress across SFI, QEI, and Engineering Thrive this year, and they remain top priorities to ensure that we continuously improve our innovation velocity and our operational metrics.

We will reimagine every layer of the tech stack for AI—infrastructure, to the app platform, to apps and agents. The key is to get the platform primitives right for these new workloads and for the next order of magnitude of scale. Our differentiation will come from how we bring these layers together to deliver end-to-end experiences and products, with the core ethos of a platform company that fosters ecosystem opportunity broadly. Getting both the product and platform right for the AI wave is our North Star!

Our performance this past year has positioned us well. And we must move forward with the intentionality and intensity that these industry shifts demand.

Our how: culture

Growth mindset has served us well over the last decade—the everyday practice of being a learn-it-all, not a know-it-all. It has reshaped our culture and helped us lead with greater humility and empathy. We need to keep that.

It starts with each of us as individuals and our personal drive to learn, improve, and get better every day. Professional rewards, growth, and pride in our craft will always be the prime drivers. Beyond that, we each have the opportunity to connect our personal passion and philosophy of how we derive meaning from the work we do with Microsoft’s mission to empower the world. This is what makes it all worthwhile.

This platform shift is reshaping not only the products we build and the business models we operate under, but also how we are structured and how we work together every day. It might feel messy at times, but transformation always is. Teams are reorganizing. Scopes are expanding. New opportunities are everywhere. It reminds me of the early ’90s, when PCs and productivity software became standard in every home and every desk! That’s exactly where we are now with AI.

Years from now, when you look back at your time here, I hope you’ll say: “That’s when I learned the most. That’s when I made my biggest impact. That’s when I was part of something transformational.”

What we’ve learned over the past five decades is that success is not about longevity. It’s about relevance. Our future won’t be defined by what we’ve built before, but by what we empower others to build now.

And I know that with your dedication, drive, and hard work we can go win together, and change the world in the process.

I look forward to sharing more at Earnings next week and addressing your questions at our next Town Hall.

Satya

Recommitting to our why, what, and how - The Official Microsoft Blog

This was either written by ChatGPT or Satya is devoid of emotion and completely delusional, Lmao. Wtf is up with these executives starting off their fake apology emails by bragging about how amazing they're doing, first Phil and now Satya, it feels more like a memo to shareholders than actual employees, completely out of touch, it would have been better to say nothing at all.

Anyway this basically guarantees more mass layoffs are coming in the future and I'm honestly not sure where Microsoft Gaming fits into this future vision, Microsoft Gaming making AI slop videogames won't have a notable impact on their AI ambitions. Really starting to wonder if Microsoft will even have a gaming division in the future.

  • "Just imagine if all 8 billion people could summon a researcher, an analyst, or a coding agent at their fingertips" - Lmfao. This is delusional, the dude is treating AI like a religion. According to Satya the average dumbass who knows nothing about coding or AI can just summon up a coding agent and make whatever he wants. Current AI needs people (who are actually experts) monitoring it because of how many mistakes it makes so I don't think anytime soon we'll be see Joe off the street making the next World of Warcraft entirely through AI.
  • "This is the enigma of success in an industry that has no franchise value." - Wtf is this utter drivel?
  • "What we’ve learned over the past five decades is that success is not about longevity. It’s about relevance." - Clown ass statement, it's about both, especially for a company like Microsoft.
Last edited by Ryuu96 - on 25 July 2025

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You called down the thunder, now reap the whirlwind

G2ThaUNiT said:

They really should do more expansions for it, and official mod support, it's a shame Virtuous sounds like a shitty employer though. They basically on purpose went over budget to over-deliver and crunched the shit out of their employees all so they could use Oblivion Remaster as a marketing pitch for their company, at the expense of their employees health.

Virtuos is said to have made significant efforts on Oblivion, with a policy of over-delivering on quality relative to the budget, and a contract without royalties (no bonuses tied to the game's success). The result: teams were pushed to their limits for a pure showcase project, with its profitability likely to be questioned.

In February, towards the end of Oblivion's development, the company announced a freeze on raises and a reduction in group-wide bonuses. Management had been questioned about the potential risk of layoffs as a result of these measures but reassured employees.

It certainly explains why Oblivion patches have been slow, worked their employees to the bone and likely didn't even profit from it (ON PURPOSE!!), a contract without royalties, Wtf. Lol. Bethesda probably made all the profits and Virtuous employees have been left with fuck all except emotional trauma. I no longer blame them for the slow patches.

Last edited by Ryuu96 - on 25 July 2025

Hopefully Virtuous employees receive better treatment for Fallout 3 Remaster.

Anyway 9m for Oblivion already is huge, people are dying for more Elder Scrolls, Lol.



God damn it it's impossible to be excited about a game doing well these days so much mismanagement!



You called down the thunder, now reap the whirlwind

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I was very happy to join Christopher Dring on The Game Business podcast yesterday. Our chat covered a heap of topics, many of them video game sales related. If you're into that kind of thing, check it out!

And idk about the boss thing, I don't even have any direct reports. But that's cool.

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— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 14:50

"Bringing Your Games To Other Platforms Is How You’re Going To Win" - Circana

Triggering Content to Many.

This is the threat that the Games-as-Platforms model represents, yep.

Not that it's inevitable.

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— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 22:13

Excellent feedback.

All those PC buyers of Helldivers II or Marvel's Spider-Man didn't just buy a PlayStation instead. All those PlayStation players that have bought Forza Horizon 5 didn't go get an Xbox, and all the Xbox players that bought MLB The Show didn't go buy a PlayStation instead.

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— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 21:26

People have their preferred platforms on which they like to play. Few console players own multiple consoles let alone all 3. PC players love playing on PC, and many others play mobile exclusively.

Huge numbers just play Fortnite or Roblox. (And Games as platforms are only getting bigger).

— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 21:28

If you want to still think it's 2005 and there's a group of video game players out there who are going to move away from their preferred platforms on which some have accumulated nearly 20 years of content in their libraries and buy an entirely new system to play one game, well, have fun with that.

— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 21:31

Look around. Formerly console exclusive IP are finding tremendous success with multiplatform strategies. Best chance for success is to reach as many potential players as possible, especially considering just how greedy and massive the biggest live service behemoths are.

It's not about the box.

— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 21:34

"But what about Nintendo!"

Nintendo is a unicorn. No other company can replicate what it does, the brand loyalty it has built over decades, or the massive cultural presence of its IP.

Look at literally any other company and what they're doing to try to fend off Fortnite, mobile or Roblox.

— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 21:37

This market is not going back to a world of high walled gardens and expensive barriers to player entry. Not in a market that is this competitive, with so much content that is widely available on any device, which is, quite often, free-to-play.

The console wars have been over for a while. Let it go.

— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 21:45

Generational, too. Gen Z and Gen Alpha expect their games to be everywhere. If they aren’t, they won’t play them and move onto to something else. Like TikTok.

— Jorge (@jorsneezy.bsky.social) 24 July 2025 at 22:14

100% correct

— Mat Piscatella (@matpiscatella.bsky.social) 24 July 2025 at 22:25



Maturing is realizing that the kinds of games folks like us play are the minority in the gaming industry now.

It blew my mind when I saw that Roblox has just as many concurrent active players as the ENTIRETY of Steam!!! Every single day! That's not even taking into account CoD, FIFA, Madden, Apex, Fortnite, Counter-Strike, Minecraft, League of Legends, etc. That's literally hundreds of millions of players who are not playing what we now old timers consider to be traditional games.

It's difficult moving on from the mentality that nothing is the way it used to be 15+ years ago.

It's so true about the generational comment. My niece and nephew only play Roblox and Minecraft on their tablets, their dads laptop and Xbox, and their phones. They go wherever the games they want to play are available.

Last edited by G2ThaUNiT - on 25 July 2025

You called down the thunder, now reap the whirlwind



You called down the thunder, now reap the whirlwind

G2ThaUNiT said:

Lol. I'm all for Kilter Films becoming the unofficial Bethesda Licenser. They put a lot of care and attention into the Fallout IP.

I'm excited, I've been saying a Fallout show should happen for years, it's so easy to make, who doesn't love seeing Nazis get fucked up? Might be called woke nowadays for having Nazis being killed but who cares, Lmfao. Not exactly something which needs a huge budget either. I wonder what else Kilter could adapt from Bethesda?

Amazon need to pull all the stops to get this guy as B.J. Blazkowicz.

Last edited by Ryuu96 - on 25 July 2025

Soooo a Wolfenstein 3 has to happen now, right? Lol.