Xbox CEO Asha Sharma has publicly addressed speculation that Microsoft could eventually sell or spin off its gaming business by dismissing both options. The comments arrive several months into a sweeping Xbox restructuring that has already brought layoffs, studio divestitures, and major changes to the company's subscription strategy.
Rumors of Microsoft considering selling Xbox have most recently intensified in June 2026, when The Information reported that the Redmond-based tech giant had explored several structural alternatives for its embattled gaming division. Those reportedly included a spin-off, a major reorganization into a wholly owned subsidiary, and a joint venture with outside partners. The report said the subsidiary option could make a future sale easier but did not indicate that Microsoft had actually begun a sale process or that any such restructuring was imminent.
Asked directly by the New York Times whether divestiture was her endgame, Sharma gave an unequivocal answer: "Xbox is not for sale." Her response still left room for other kinds of organizational change, with Sharma noting that Microsoft would consider "the right partnerships" and "the right operating model," along with whatever steps might be necessary to achieve them moving forward, all with the goal of putting the overall business in a stronger financial position. The chief executive, who took over Xbox from Phil Spencer in late February 2026, did not elaborate on what those possibilities could entail.
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