Xbox CEO Asha Sharma has moved to put an end to speculation that Microsoft could sell or spin off its gaming business, stating clearly that “Xbox is not for sale.” Her comments come at a time when Microsoft is undertaking one of the biggest restructurings in Xbox’s history.
Speaking in an interview with The New York Times, Sharma was asked about the future of Xbox following months of reports and speculation surrounding Microsoft’s gaming strategy. Her response was direct, although she also emphasized that the company remains willing to explore different partnerships and operating models.
“We will do whatever it takes to set the company up for success,” Sharma said. She added that Xbox would consider the right partnerships and operating model needed to achieve long-term success.
The statement arrives after reports earlier this year suggested that Microsoft executives had considered various options for the future structure of its gaming operations, including the possibility of spinning out Xbox. More recent reporting indicates that Microsoft leadership has instead backed Sharma’s restructuring strategy.
That restructuring has already resulted in significant changes. Microsoft announced in July that Xbox would reduce its workforce by approximately 3,200 employees during fiscal 2027, with around 1,600 positions eliminated immediately. Several studios were also moved out of Xbox’s direct management structure.
Sharma has described the overhaul as a major reset for the gaming division, with Xbox focusing more heavily on its biggest franchises, simplifying management and seeking a more sustainable business model. Microsoft CEO Satya Nadella has publicly supported the streamlining effort, saying he feels positive about Xbox’s remaining studios and intellectual property.
Despite the upheaval, Sharma’s strategy does not appear to involve abandoning Xbox hardware. Earlier this year, she said the company wanted to stabilize its current console generation while continuing to develop future hardware. Xbox is also pursuing broader approaches involving PC, cloud gaming, partnerships and different business models.
For now, Sharma’s message is straightforward. Microsoft is restructuring Xbox rather than preparing to sell it. Whether the company’s new strategy delivers the growth Microsoft wants will depend on how successfully it can balance hardware, software, subscriptions and its expanding publishing business over the coming years.
