Xbox CEO Denies Sale Plans as Microsoft Weighs New Approaches

Xbox CEO Asha Sharma has denied reports that Microsoft plans to sell its gaming division, though she acknowledged the company is exploring partnerships and different operating models to strengthen the business.

Her comments, reported by GameSpot from an interview with The New York Times, come as speculation has circulated about a potential sale. The discussion reflects concerns about Xbox's financial performance relative to Microsoft's more profitable cloud-computing and artificial-intelligence divisions.

According to the primary report, Xbox operates at a 3% profit margin despite Microsoft investing tens of billions of dollars in acquiring game publishers and studios. Sharma has previously told employees the business was not in a healthy state, and Microsoft CEO Satya Nadella has stated it needs to pull its weight, praising recent cost-cutting efforts as a streamlining initiative.

Sharma emphasized that Xbox still faces a lengthy road to success within Microsoft and that the company is taking a long-term view toward improving the division's prospects.

Microsoft's gaming pipeline includes Halo as an Activision project, Diablo targeting 2029, StarCraft set for 2030, and multiple Xbox studios developing Fallout games. These titles form part of a broader effort to boost the division's financial performance.