Microsoft CEO Satya Nadella has committed to continued investment in video games, following a leadership transition at Xbox

Satya Nadella, the CEO of Microsoft, affirmed the company's ongoing commitment to investing in its gaming division.

In a Q&A session with new Xbox leader Asha Sharma, as reported by Windows Central, Nadella expressed the company's strong dedication to the gaming sector, emphasizing the potential to expand beyond current traditional areas. He stressed the importance of Xbox remaining "best-in-class" in this field.

Gaming is one of Microsoft’s core identities, according to Nadella, alongside being a platform developer and firm focused on 'knowledge work.' He highlighted the transformative effects gaming has had on the company and the tech industry at large, particularly regarding cloud technology, Windows OS, and GPU-based server developments.

Nadella noted, "The spillover from gaming excellence to the rest of the company is clear." He joked with Nvidia's CEO Jensen Huang, stating, "If it wasn't for gaming, Nvidia wouldn't exist. Without DirectX, the GPU revolution, or its acceleration, might not have occurred."

He continued, "That's why gaming is a significant focus for us. As Phil [Spencer, former Xbox chief] often said, gaming is the largest entertainment sector. The challenge is imagining its future beyond traditional experiences, like a AAA console game. We are committed to supporting this sector and it's vital for the team to deliver exceptional execution and innovation. Despite the inherent software creation risks, we must excel."

Microsoft recently revealed that Phil Spencer and Sarah Bond will exit the company, with Asha Sharma appointed as the CEO of Microsoft Gaming and Executive Vice President. Previously, she served almost two years as the president of CoreAI.

Following her appointment, Sharma addressed industry and consumer concerns about her AI expertise, especially as Microsoft reportedly seeks to enhance AI usage within its operations. She stated she has "no tolerance for bad AI" and emphasized that Xbox is not being pressured to adopt AI.

Sharma also launched Project Helix, the next-gen Xbox console, noting it will support PC games, aligning with previous Microsoft hints.