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 .

It was at least the fifth time in the interview that Nadella said the word "innovation," though at no point did an idea of any specificity precede or follow it. While most of the interv

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