“Microsoft’s Gaming Head Confirms Xbox Is Not Up for Sale”

Xbox CEO Asha Sharma has firmly dismissed rumors suggesting that Microsoft might sell its Xbox division. Reports surfaced in June indicating that Microsoft CEO Satya Nadella and CFO Amy Hood were contemplating a complete spin-off of Xbox. However, more recent updates indicate that both executives are now backing Sharma’s vision for a significant overhaul of the unit.

“Xbox is not for sale,” Sharma stated in an interview. “We will do whatever it takes to set the company up for success, exploring the right partnerships and operational models to achieve that.”

It seems Nadella and Hood have opted for a major reset of Xbox rather than pursuing a joint venture or a full divestiture. Sharma first announced her restructuring plans in June, describing it as a reset for the division. As part of this strategy, Microsoft is set to lay off up to 3,200 Xbox employees during its 2027 financial year, which concludes in June.

Nadella expressed his support for Sharma’s restructuring and the associated layoffs during a recent podcast appearance. “There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see,” he remarked. “We need to create a sustainable business model that allows us to deliver gaming to more and more people.”

The latest restructuring has resulted in Halo being moved under Activision, along with the teams behind Sea of Thieves and Age of Empires. These changes, part of a broader shake-up at Xbox Game Studios, seem aimed at positioning Xbox as a wholly owned subsidiary, similar to Microsoft’s approach with LinkedIn.

Microsoft is cutting down management layers within Xbox, offloading smaller studios, and concentrating on its major franchises. While this could potentially lead to an Xbox sale in the future, the current focus is on revitalizing growth within the division. “We’ve got a long way to go with Microsoft,” Sharma noted, “and we’re committed to a long-term perspective.”

However, as Sharma pointed out earlier this year, “The plan’s the plan until it’s not the plan.”