Microsoft's gaming chief Asha Sharma has publicly denied that the Xbox business is being sold. In an interview with The New York Times, Sharma said 'Xbox is not for sale' and that the company would pursue the right partnerships and operating model to set the unit up for success. The denial follows reports from The Information that CEO Satya Nadella and CFO Amy Hood had considered spinning out Xbox entirely, though they later backed Sharma's overhaul plans.
Sharma's 'reset' includes laying off up to 3,200 Xbox employees over Microsoft's 2027 fiscal year. The restructuring has already moved Halo, along with the developers behind Sea of Thieves and Age of Empires, under Activision. Nadella publicly supported the changes, saying the team is streamlining and needs to invent a sustainable business model. The direction appears to make Xbox a wholly owned subsidiary, similar to LinkedIn, rather than a separate company.
Sharma emphasized a 'long-term view' with Microsoft, but also acknowledged the plan could change, saying 'The plan's the plan until it's not the plan.' For now, the company is focused on growth through its larger franchises rather than a sale.