Xbox is not for sale, Microsoft gaming chief insists
Xbox CEO Asha Sharma denies reports of Microsoft selling the gaming division, outlining plans for major restructuring and layoffs.
Stock photo for illustration only, not from the actual event
- Xbox CEO Asha Sharma firmly denied rumors that Microsoft is considering selling off the Xbox business.
- Microsoft has chosen a massive overhaul and restructuring plan instead of spinning off the gaming unit.
- The company plans to lay off up to 3,200 Xbox employees throughout its 2027 financial year ending in June.
- Recent changes include moving Halo under Activision and focusing heavily on major franchise development.
Amid ongoing industry speculation regarding the future of Microsoft's gaming division, Xbox CEO Asha Sharma has stepped forward to dispel rumors of a sell-off, confirming that the gaming brand remains firmly anchored within Microsoft.
Reports from The Information in June indicated that Microsoft CEO Satya Nadella and CFO Amy Hood had previously weighed spinning out Xbox entirely. However, both executives more recently pivoted to back Sharma's comprehensive plans to overhaul and restructure the division.
Stock photo for illustration only, not from the actual event
In an interview with The New York Times, Sharma firmly stated, "Xbox is not for sale. 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."
"Xbox is not for sale. 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
The reset plan, announced by Sharma in June, involves cutting up to 3,200 Xbox jobs across the 2027 financial year concluding in June. Satya Nadella voiced strong support for the restructuring during an appearance on the Sources podcast, praising the team's streamlining efforts and the pursuit of a sustainable business model.
The latest operational shake-up has transitioned Halo development under Activision, alongside the teams behind Sea of Thieves and Age of Empires. These adjustments point toward structuring Xbox as a wholly-owned subsidiary, adopting a corporate framework similar to how Microsoft manages LinkedIn.
Microsoft's decision to restructure rather than divest its gaming arm highlights a strategic effort to retain absolute control over core intellectual properties like Halo and Age of Empires. By streamlining management layers and offloading smaller projects, the tech giant aims to restore profitability and sustainable long-term growth in a fiercely competitive gaming market.
While trimming management layers and smaller studios signals a leaner approach, the immediate priority rests on steering Xbox back toward growth. Sharma noted that while plans remain adaptable, the leadership team is fully committed to taking a long-term perspective alongside Microsoft.
Source: The Verge
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