Microsoft’s Xbox division has been undergoing major restructuring this year, with large-scale layoffs, studio adjustments, and IP redistributions. This has led to speculation about whether Microsoft is preparing to spin off or even sell Xbox. In June, reports emerged that Microsoft had considered splitting Xbox into a separate subsidiary or exploring other ways to divest it. Now, Xbox CEO Asha Sharma has finally responded directly to these rumors in an interview with The New York Times.
“We’re Not Selling!”
When asked if Xbox was preparing to sell, Sharma was direct: “Xbox is not for sale.” She emphasized that the team would take all necessary steps to make Xbox successful, including finding the right partners, adjusting operations, and taking other measures as needed. She also stated that there’s still “a long way to go” with Microsoft, and the company will take a long-term view of Xbox’s future.
But Xbox Is Still Cutting Dramatically
While the company denies selling, the scale of Xbox’s restructuring is significant. In July, Microsoft announced it would cut approximately 3,200 jobs in fiscal year 2027, followed by another 268 job cuts in September. The company also restructured its studio and IP management, including having Activision take over development of the next Halo game, while Bethesda expanded management of its other teams. Microsoft stated the restructuring aims to reduce management layers, consolidate studios, and focus resources on more important titles and franchises.
Not Selling Xbox, But The Reset Isn’t Over
So the current situation is more like: Xbox isn’t for sale, but Microsoft is definitely rethinking how Xbox makes money and operates. Sharma emphasizes a long-term strategy, hoping to ultimately build an Xbox that can continue growing and generating profits.