Microsoft Confirms Xbox Gaming Business Not for Sale

Microsoft's Xbox CEO Asha Sharma has firmly denied speculation that the company is considering selling its Xbox gaming business. Sharma emphasized that Xbox is not for sale and that the team is committed to long-term growth within Microsoft.

The rumors of a potential sale originated from a June 2026 report by The Information, which stated that Microsoft had internally discussed options for restructuring Xbox into a wholly-owned subsidiary, potentially leading to a spin-off or sale in the future. Subsequent large-scale layoffs and strategic shifts within the Xbox division, including changes to its Game Pass strategy, fueled external speculation that these moves were preparation for divesting Xbox.

In a direct response to these claims during an interview with The New York Times, Sharma stated, "Xbox is not for sale." She stressed that Microsoft will "do everything we can to make the company successful," including exploring suitable partnerships and operational models, but with the goal of achieving growth under the Microsoft umbrella. "We have a long way to go with Microsoft, and we're going to take the long-term view," she added.

Reports from IT Home indicate Sharma highlighted a long-term perspective. Analysts suggest Microsoft's current restructuring efforts are focused on internal streamlining, reducing management layers, consolidating smaller studios, and concentrating resources on flagship intellectual properties and subscription services.

Microsoft CEO Satya Nadella has also recently commented on the need for Xbox to establish a "sustainable business model" and return to growth, without signaling any intent to exit the gaming sector.