Xbox CEO Asha Sharma: "Xbox is not for sale"

Xbox CEO Asha Sharma has moved to quash speculation that Microsoft could sell or spin off its gaming business, telling The New York Times: "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," Sharma said. She added that while the company remains open to exploring different partnerships and operating models, a sale is not under consideration.

The denial comes as Xbox navigates one of the most significant restructurings in its history. Speculation about a potential spinoff or sale has intensified as Microsoft has made sweeping changes to its gaming division over the past year. Xbox now accounts for around 6% of Microsoft's total profits, according to The New York Times.

Sharma took over Xbox in February with no prior video game industry experience, having previously served as president of Microsoft's CoreAI division and chief operating officer at Instacart. Her tenure has been defined by significant cost-cutting measures. Xbox shed roughly a fifth of its staff during summer 2024 and shut down or sold off five studios in the process. Microsoft CEO Satya Nadella has publicly praised the restructuring as part of a push toward what he called a "sustainable business model" for the division.

The overhaul has continued since those initial cuts. Microsoft transferred Rare and the Halo franchise to Activision, proposed the closure of Ninja Theory, and cut a further 268 roles last week. Three studios including Double Fine, Compulsion Games, and Undead Labs were spun out as independent companies. This left only a handful of developers under Xbox Game Studios: The Coalition, Playground Games, Mojang, InXile Entertainment, and what remains of Halo Studios.

To some observers, these moves appeared designed to streamline the business and make it more attractive to potential buyers. Bundling Rare with Activision, for example, could make the company a more appealing acquisition target than selling the studio independently.

However, Sharma's statement does not completely rule out the possibility of Xbox being spun off as an independent entity that maintains close ties to Microsoft through partnership arrangements, as some analysts have suggested. She emphasized a long-term commitment: "We've got a long way to go with Microsoft, and we're going to take the long-term view."

Game Pass, a key pillar of Xbox's strategy, has faced challenges. Subscriber numbers peaked at 34 million before beginning to decline. Microsoft has also pulled back from putting new Call of Duty games directly onto the service, concerned that the approach was cannibalizing standalone sales.

Despite the restructuring, Sharma said Xbox retains 500 million monthly players. The company is pursuing expansion into Africa, Latin America, and South Asia through cloud gaming initiatives. Looking ahead, Xbox is hoping upcoming releases like Gears of War: E-Day and next year's Clockwork Revolution can perform well as console exclusives. Sharma recently signed a deal with Kojima Productions for its action-stealth game Physint after PlayStation withdrew funding from the project.