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PC Gamer
PC Gamer
Wes Fenlon

The best way to innovate in gaming 'is to have good margins,' says Microsoft CEO Satya Nadella, so I guess he'll be reinvesting his $96.5 million payday back into Xbox any second now

Satya Nadella laughing at the Microsoft 50th Anniversary Copilot event.

Days after a report from Bloomberg explained that Microsoft has expected unrealistic profit margins from its gaming division—one likely reason for its raft of studio closures, game cancelations and thousands of layoffs—a chipper Satya Nadella basically said as much out loud during an interview at a Github conference on Tuesday.

"If we as an industry don't continue to innovate how we produce, what we produce, how we think about distribution, the economic model—the best way to innovate is to have good margins, because that's the way you can fund," the Microsoft CEO said on the tech-focused talk show TBPN.

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