Xbox CEO Asha Sharma denies that Microsoft is considering selling its gaming business, committing instead to a long-term restructuring plan.
“Xbox is not for sale,” Sharma told the New York Times. “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.”
What sparked the speculation
The Information reported in June that Microsoft CEO Satya Nadella and CFO Amy Hood had considered spinning out Xbox entirely. That same outlet reported earlier this month that both executives have since backed Sharma’s plan to overhaul the division instead of pursuing a separation.
Sharma’s restructuring—announced in June as a “reset”—includes sweeping layoffs and organizational changes designed to restore growth to the unit. Microsoft is planning to lay off up to 3,200 Xbox employees over its 2027 financial year, which ends in June, according to PC Gamer.
Nadella’s backing signals the direction
Microsoft CEO Satya Nadella recently signaled approval of Sharma’s approach. In an interview on the Sources podcast, Nadella called the “streamlining” that Sharma is doing “great to see” and said “Xbox is going to get back to growth this next fiscal year.”
The restructuring has moved major franchises under different divisions: Halo moved to Activision, and developers behind Sea of Thieves and Age of Empires shifted as well. Microsoft is also shedding smaller studios and reducing management layers.
What this means going forward
While Sharma’s statement rules out an immediate sale, she acknowledged in February that “the plan’s the plan until it’s not the plan”—leaving open the possibility that Microsoft’s strategy could shift. For now, the company is focused on restructuring Xbox as a more efficient operation rather than separating it from Microsoft’s portfolio.
Nadella emphasized the goal: “We want to be a great publisher and a great platform provider for games across both PCs and Xboxes.”
Reporting from The Verge, IGN, VGC and GameSpot contributed to this story.
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