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

Xbox CEO Asha Sharma has commented on recent reports Microsoft is considering selling its entire gaming business following multiple rounds of layoffs.

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

Xbox CEO responds to reports Microsoft intends to sell its gaming business 2

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.

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.

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 the Sources podcast, Nadella welcomed the streamlining of Xbox and said Microsoft needs a sustainable business model that can deliver games to more people.

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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.

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News Sources:ign.com and nytimes.com

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About the author

Tech and Science Editor

Jak joined TweakTown in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms.

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