Xbox CEO Asha Sharma has flatly denied reports that Microsoft plans to sell off its gaming division, confirming that the company is instead committed to restructuring and long-term growth following sweeping layoffs and strategy shifts across the brand.
Asha Sharma Denies Rumors of an Xbox Sale
Rumors regarding the future of Microsoft’s gaming division have swirled for months, driven by leadership changes and massive workforce reductions. Addressing the speculation in a profile with The New York Times, Xbox CEO Asha Sharma made her position clear.
"Xbox is not for sale." — Asha Sharma, Xbox CEO, via The New York Times
Asha Sharma Says 'Xbox Is Not For Sale' Amid
The denial arrived as industry observers questioned whether a wave of streamlining and restructuring was designed to prepare the gaming business for a spin-off or a standalone joint venture. Addressing those operational pivots, Sharma added that management will do whatever it takes to achieve success.
"We will do whatever it takes to set the company up for success, and we will look at the right partnerships, the right operating model and everything needed to achieve that." — Asha Sharma, Xbox CEO, via The New York Times
While external analysts predicted an eventual divestiture, Microsoft executives ultimately chose a massive internal reset over selling the brand off entirely. Reports from The Information earlier this year indicated that Microsoft CEO Satya Nadella and CFO Amy Hood had considered spinning out Xbox before both executives more recently supported Sharma’s plans to overhaul the unit. Nadella backed the restructuring in a recent appearance on the Sources podcast, noting that the streamlining is "great to see" as the company works to invent a sustainable business model.
Restructuring, Layoffs, and Financial Pressures
The denial follows months of deep operational cuts and studio realignments. Microsoft anticipates reducing its Xbox workforce by as many as 3,200 positions throughout its 2027 fiscal year, which ends this June. Nearly 2,000 Xbox staff have already been cut, with more to come this financial year. Multiple studios have either exited Xbox or face closure, and various games have been canceled.
Xbox is not for sale’ says Microsoft’s gaming chief
The gaming division has long been viewed as an awkward fit for Microsoft, as its other businesses, including cloud computing and AI, continue to dwarf it despite the massive $70 billion acquisition of Activision Blizzard in 2023. As hardware sales have struggled and a major bet on Game Pass failed to materialize as expected, the case for a potential divestiture gained traction among analysts. Reports claimed Xbox might ditch day-one games on Game Pass starting next year, though Microsoft stated it had no updates to share regarding those claims.
Managing Franchise Priorities and Collaboration
Amid the shake-ups, the division is narrowing its focus toward fewer, bigger video game franchises. Recent news confirmed that the Halo franchise is moving under Activision.
Microsoft Insists Xbox Is Not for Sale Amid Reports
Despite the internal restructuring, Sharma emphasized that the company remains open to external cooperation, even with rivals. Discussing the potential for TV shows and movies, Sharma noted that the company will continue to work with Sony, asserting that "competition and collaboration can coexist."
Reflecting on the intensity of the current overhaul, Sharma remarked on the personal commitment required for the role. "I don’t think you sign up for roles like this for work-life balance," she said. "My belief is that you commit to them because you are dedicated to the cause and you do whatever is necessary."
Acknowledging the scale of the turnaround, Sharma emphasized patience as the restructuring takes root across the division’s studios and long-term bets.