Microsoft gaming division chief Asha Sharma has publicly dismissed speculation that Xbox is being prepared for sale, denying the claims even as she oversees one of the most significant restructurings in the company’s history. Speaking to The New York Times amid a wave of layoffs that have already seen 268 staff let go and remaining studios consolidated under fewer leadership arms, Sharma made clear where her position stands on the future of the brand.
The comments come during a turbulent period for Microsoft’s gaming operations. In June, The Information reported (via Reuters) that executives Satya Nadella and Amy Hood were considering spinning out or restructuring Xbox as a wholly owned subsidiary, a move that could theoretically open the door to a sale or joint venture in future years. Sharma has now shut down those rumors directly.
A Firm Denial Amid Corporate Uncertainty
“Xbox is not for sale,” Sharma said. “We will do whatever it takes to set the company up for success, and we will look at the right partnerships, the right operating model and everything needed to achieve that.” Her remarks arrive even as she has been painted by some outlets as a millennial boss delivering necessary disruption—a characterization Sharma herself did not shy away from during her appearance.
The restructuring Sharma has implemented follows her selection to replace outgoing CEO Phil Spencer, who retired after years at the helm. Under her leadership, Xbox has moved away from a structure of numerous independent studios toward consolidation under a small number of arms led by executives overseeing divisions such as Activision and Bethesda.
“Xbox is not for sale. We will do whatever it takes to set the company up for success, and we will look at the right partnerships, the right operating model and everything needed to achieve that.”
Asha Sharma, Xbox CEO
The Human Cost Behind the Corporate Restructuring
Nadella has recently praised the streamlining Sharma has been enacting at Xbox, framing it as a great reset capable of restoring the division to its former glory. Following last month’s cuts, Microsoft stated that it is now roughly three-quarters through the layoffs and studio consolidations set in motion since Sharma took over.
If Xbox were eventually sold once executives finish their current round of layoffs and restructuring, Microsoft would need a willing buyer for some or all of the division. Given Xbox’s current state—marked by a retreat from Game Pass prominence and an increasingly multiplatform approach as the RAM crisis makes next-gen consoles appear hugely expensive—it may not be the most attractive proposition for investors seeking quick returns.
Other companies have found success attracting investment to turnaround efforts, with Ubisoft turning to Tencent in 2025. In that arrangement, the Chinese corporation acquired a stake in the new subsidiary overseeing future Assassin’s Creed, Rainbow Six, and Far Cry titles.
Looking Ahead
From an outside perspective, it appears Microsoft executives may be content to let Sharma’s cuts and changes play out. A tighter focus on producing new entries in established tentpole series like Fallout more quickly and improving Halo’s fortunes could pay dividends, potentially making any future sales pitch easier to assemble—even if only certain portions of Xbox ended up being divested.
None of this corporate maneuvering should distract from the human cost of the cuts Microsoft is currently undergoing. The company also remains subject to a BDS movement boycott over its reported ties to the Israeli military, adding another layer of complexity to an already challenging period for the gaming giant.
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