Xbox CEO responds to reports Microsoft intends to sell its gaming business

TL;DR: Xbox CEO Asha Sharma says Microsoft is not selling Xbox, despite reports it may separate or restructure the gaming division. She says the company will pursue changes, partnerships, and a sustainable operating model, while taking a long-term approach; further layoffs or restructuring were not ruled out.
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Xbox CEO Asha Sharma has responded to recent reports that Microsoft hasn’t ruled out the possibility of selling its entire gaming business following its ongoing restructuring.

In a recent interview with The New York Times, Sharma said, “Xbox is not for sale,” while explaining that the company is prepared to make changes to improve the division’s performance. She said Xbox would do “whatever it takes” to succeed, including exploring partnerships and finding an appropriate operating model. Sharma also emphasized a long-term approach to the business within Microsoft.

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Sharma’s reassurance about the longevity of Xbox under the Microsoft banner comes after reports from Reuters and The Information surfaced that claimed Microsoft was considering separating Xbox or changing its corporate structure in such a way that would make Xbox independently owned, but still a close partner with Microsoft. The reports claimed this change would be beneficial to Microsoft’s balance sheet.

• Read more: Satya Nadella praises Xbox restructuring, says ‘streamlining is great to see’

However, those reports seem to be inaccurate, as Sharma said, “We’ve got a long way to go with Microsoft, and we’re going to take the long-term view.“

These reports of Microsoft separating from Xbox were reportedly made before Microsoft CEO Satya Nadella pledged support for Sharma’s restructuring plan, which has involved several rounds of layoffs with approximately 3,200 role reductions originally announced for fiscal year 2027. Discussing Xbox on thed Microsoft needs a sustainable business model that can deliver games to more people

What operating-model changes is Asha Sharma considering to improve Xbox’s performance?

What partnerships has Asha Sharma or Microsoft discussed as part of Xbox’s future plans?

How would the reported independent-ownership scenario for Xbox differ from Microsoft selling its gaming business outright?

Which Xbox studios or teams have been affected by Microsoft’s restructuring and layoffs?

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Notably, neither Nadella nor Sharma promised that the Xbox division will avoid further layoffs, studio changes, or strategic “restructuring” shifts. For now, however, Xbox’s chief has rejected the idea that the gaming business is being offered for sale.