Xbox CEO Sharma Says Gaming Unit Is Not for Sale

Xbox CEO Asha Sharma has denied reports that Microsoft is considering selling or spinning out its gaming business.

Sharma rejects sale rumors in New York Times interview. Sharma told the outlet that Xbox is not for sale. She added that the company will pursue the right partnerships and operating model to achieve success.

The comments come after The Information reported in June that Microsoft CEO Satya Nadella and CFO Amy Hood had considered spinning out Xbox entirely. The same outlet reported earlier this month that both executives have more recently backed Sharma’s overhaul plans.

Restructuring includes major layoffs and studio shifts. Microsoft plans to lay off up to 3,200 Xbox employees during its 2027 financial year, which ends in June, VGC reported. On Xbox Wire, Activision is taking Rare and World’s Edge, and a new Activision team will develop the next Halo, separate from Call of Duty. A small Halo Studios team keeps supporting the games already out. The Verge reported the same shift, and that Halo Studios itself is not moving under Activision.

Sharma announced the overhaul in June and described it as a reset for the division. Nadella publicly supported the changes last week on the Sources podcast.

Nadella endorses streamlining and new business model. Nadella said there is some amount of streamlining under Sharma that is great to see. He added that Microsoft must invent the right sustainable business model to deliver gaming to more people.

Sharma stated that Microsoft has a long way to go and will take the long-term view.