Asha Sharma Clarifies: ‘Xbox Is Not Up for Sale’ Amid Speculation of Microsoft’s Gaming Business Restructuring

Microsoft’s recent overhaul of Xbox resembles the kind of moves a company might make if it were considering exiting the gaming sector or spinning off the division as a separate entity. Despite speculation about mass layoffs and restructuring hinting at a potential sale, CEO Asha Sharma insists that’s not the direction they’re heading.

“Xbox is not for sale,” Sharma stated in a recent interview. “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.”

This response, described by the interviewer as a “bob and weave,” comes amid predictions from analysts about a possible divestiture of Xbox. The gaming division has often felt like an awkward fit within Microsoft, especially when compared to its more lucrative ventures in cloud computing and AI, which overshadow gaming despite the significant $70 billion acquisition of Activision Blizzard in 2023. With hardware sales faltering and a major investment in Game Pass not yielding expected results, the rationale for a potential exit has gained traction.

Earlier this year, discussions surfaced regarding the possibility of spinning Xbox off. This could manifest as a complete sale to another entity or simply transforming Xbox into an independent subsidiary or joint venture. The motivation behind such a move would be to detach the costly, high-risk gaming segment from the rest of the company, potentially improving Microsoft’s overall financial health.

However, while the closure or sale of smaller studios and the reorganization of others under internal publishing arms like Activision and Bethesda might suggest a forthcoming spin-off, Microsoft’s recent strategies can also be interpreted as long-term investments. Revamping Halo Studios and essentially starting anew represents a significant strategic shift that may not yield results for several years. The same applies to accelerating sequels for major franchises like Fallout and Diablo, with a new entry in the latter announced for 2029.

“We’ve got a long way to go with Microsoft,” Sharma remarked, “and we’re going to take the long-term view.”