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Xbox CEO Denies Reports of Microsoft Selling Gaming Division
Key points
- Xbox CEO Asha Sharma denied reports of a potential Xbox sale.
- Microsoft is implementing a restructuring plan for its gaming division.
- The restructuring includes layoffs of up to 3,200 employees.
- Halo and other studios are moving under Activision as part of the changes.
Xbox Not For Sale
Xbox CEO Asha Sharma has publicly denied reports suggesting Microsoft was considering selling off its Xbox business. Previous reports from The Information indicated that Microsoft CEO Satya Nadella and CFO Amy Hood had explored options for spinning out Xbox entirely. Sharma stated in an interview with The New York Times that Xbox is not for sale and that the company will focus on long-term success through partnerships and operating models.
Restructuring Plan Underway
Instead of a sale or joint venture, Microsoft executives Nadella and Hood have supported Sharma's plan to overhaul the Xbox unit. Sharma announced this restructuring in June, referring to it as a 'reset' for the division. This plan involves significant changes, including planned layoffs of up to 3,200 Xbox employees by June 2027.
Executive Support and Strategic Shifts
Satya Nadella has publicly backed Sharma's restructuring efforts and the associated layoffs, noting the importance of streamlining the team and inventing a sustainable business model for gaming. The restructuring includes moving franchises like Halo under Activision and reorganizing Xbox Game Studios. These changes aim to reduce management layers, offload smaller studios, and concentrate on larger Xbox franchises, potentially aligning Xbox more closely with Microsoft's wholly-owned subsidiary model, similar to LinkedIn.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Xbox CEO Asha Sharma stated that Microsoft's Xbox business is not for sale, refuting earlier reports that Microsoft executives considered spinning out the division. Instead, Microsoft is proceeding with a restructuring plan for Xbox, which includes layoffs and a focus on core franchises.